Exercise 15-16 Factory overhead computed, applied, and adjusted LO P3, P4 At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,886,000, and direct labor costs, $460,000. At year-end, the company's records show that actual overhead costs for the year are $2,238,900. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released Movies still in production Total actual direct labor cost $500,000 49,000 $549,000 1. Determine the predetermined overhead rate for the year. 283. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Reg 4 Determine the predetermined overhead rate for the year. Overhead Rate Choose Numerator: 1 Choose Denominator: Estimated overhead costs 1 Estimated direct labor costs $ 1,886,000/ $ 460,000 Overhead Rate Overhead rate 410% Reg Req 2 and 3 > Exercise 15-16 Factory overhead computed, applied, and adjusted LO P3, P4 At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,886,000, and direct labor costs, $460,000. At year-end, the company's records show that actual overhead costs for the year are $2,238,900. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released Movies still in production Total actual direct labor cost $500,000 49,000 $549,000 1. Determine the predetermined overhead rate for the year. 2&3. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Ind 3 Reg 4 Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Actual overhead 2,238,900 2,238,900 Overapplied overhead Exercise 15-16 Factory overhead computed, applied, and adjusted LO P3, P4 At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,886,000, and direct labor costs, $460,000. At year-end, the company's records show that actual overhead costs for the year are $2,238,900. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released Movies still in production Total actual direct labor cost $500,000 49,000 $549,000 1. Determine the predetermined overhead rate for the year. 283. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. 5 Req 1 Req 2 and 3 Reg 4 Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. View transaction list View journal entry worksheet No Credit General Journal Date Debit 1,886,000 1 Dec. 31 Factory overhead Cost of goods sold 1,886,000
