Exercise $11-6$A $($Algo$)$ Recording overhead costs in T$-$accounts LO $11-2$

Vernon Company and Walton Company both apply overhead to the Work in Process Inventory account using direct labor hours. The

following information is avallable for both companies for the year.

Requlred

a$.$ Compute the predetermined overhead rate for each company.

b$.$ Using T$-$accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting perlod for each

company, assuming the amounts are immaterial.

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Using T$-$accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the

amounts are immaterial.