Exercise 15-16 Factory overhead computed, applied, and adjusted LO P3, P4

In December 2016, Infodeo established its predetermined overhead rate for movies produced during 2017 by using the following cost predictions: overhead costs, $2,184,000,and direct labor costs, $420,000. At year-end 2017, the companys records show that actual overhead costs for the year are $1,232,300. Actual direct labor cost had been assigned to jobs as follows.

Movies completed and released	$	200,000
Movies still in production		39,000
Total actual direct labor cost	$	239,000

2&3. 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.

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