Exercise 1 Ikerd Company applies manufacturing ovehread to units on the basis of machine hours used. For the upcoming year, overhead is estimated at $300,000 and machine hour usage is estimated at 125,000 hours. During the year, 5325,000 of actual overhead costs were incurred and 130,000 actual machine hours were used. Instructions a Compute the pre-determined overhead rate for the year. b. Give the general journal entry required to record the incurrence of the actual overhead costs. Assume that all of the overhead costs were paid in cash GENERAL JOURNAL Date Account Titles DR CR c. During the year, five different units were in production and each unit had the following machine hour usage: Machine Unit Hours 1 18,000 2 35,000 3 24,000 4 27.000 5 26,000 Compute the amount of overhead that should be applied to each unit. d What is the total amount of overhead applied to production for the year? e Give the general journal entry required to apply the overhead costs to production for the year, GENERAL JOURNAL Date Account Titles DR CR f. What is the amount of over or under-applied overhead at the end of the year? g. Give the general jounal entry to close the overhead account at the end of the year. GENERAL JOURNAL Date Account Titles DR CR