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Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $119,500 and $124,200, respectively. During the
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $119,500 and $124,200, respectively. During the year, actual overhead was $106,600 and actual direct labor cost was $112,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include (Round predetermined overhead rate to nearest whole percentage.):
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