At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $1,100,000, and direct materials costs, $500,000.At year-end, the company reports that actual overhead costs for the year are $1,108,600. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold.

Preview File Edit View QO E a E Go Tools Window Help Screen Shot 2021-11-09 at 2.20.31 PM $ - 100x Tue 2:21 PM = KHI Screen Shot 2021-11-09 at 2.20.38 PM Search Search Required 1 Required 2 Required 3 Required 1 Required 2 Recuired 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. Determine the predetermined overhead rate using estimated direct materials costs. Factory Overhead Numerator 4 Actual overhead Applied overhead Overhead Rate Denominater: Estimated dictator al cos 5 500 0CC cc 1 Estimated ovarhaad ats $ 1 100 000 - Overhead Rate = O creed rate 2204 1 Required Required 2 > D Screen Shot 2021-11-09 at 2.20.44 PM Search WANIEMI 1. Journal entry worksheet > Citoto CH