Exercise 15-5 (Part Level Submission)

Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $315,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $391,572 of overhead costs are incurred and 131,100 hours are used.

(a) Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.52.) Manufacturing overhead rate per machine hour $ Manufacturing Overhead $ repare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit