Aggregator Industries does cement pouring jobs for homes and businesses. Below is information related to its Overhead application:
Estimated Overhead Cost	$240,000
Estimated Direct Labor Hours	29,000
Actual Direct Labor Hours	31,587
Estimated Machine Hours	74,000
Actual Machine Hours	68,541
Depreciation of Mixing Equipment	$48,000
Depreciation of Pouring Equipment	$52,000
Fuel for Cement Truck	$3,900
Supervisor Salaries	$104,000
Advertising Expense	$2,850
Rent Expense for Cement Yard	$23,000
Required:
1. Determine the Predetermined Overhead Rate if the Cost Driver is Direct Labor Hours.
Predermined Overhead Rate (Direct Labor Hours)	$8.28
2. Calculate the Over/Underapplied Overhead.
Use this T-Account to calculate Over/Underapplied Overhead.
Manufacturing Overhead
Debit	Credit
Over/Underapplied Overhead
3. Create a journal entry to dispose of the Over/Underapplied Overhead.
Date	Account	Debit	Credit
6/30/2022
4. Repeat steps 1-3, but with Machine Hours as the Cost Driver.
Predermined Overhead Rate (Machine Hours)	$3.24
Use this T-Account to calculate Over/Underapplied Overhead.
Manufacturing Overhead
Debit	Credit
Over/Underapplied Overhead
Date	Account	Debit	Credit
6/30/2022