In December 2014, Custom Mfg. established its predetermined overhead rate for jobs produced during year 2015 by using the following cost predictions: overhead costs, $1,300,000, and direct labor costs, $500,000. At year-end 2015, the companys records show that actual overhead costs for the year are $1,376,600. Actual direct labor cost had been assigned to jobs as follows.

Jobs completed and sold	$	390,000
Jobs in finished goods inventory		82,000
Jobs in work in process inventory		54,000
Total actual direct labor cost	$	526,000

Determine the predetermined overhead rate for year 2015.

Overhead RateChoose Numerator:/Choose Denominator:=Overhead Rate/=Overhead rate/=

.	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.
	Factory Overhead

Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.

Record entry to allocate underapplied /overapplied overhead

Date	General Journal	Debit	Credit
Dec 31