Insert Fake Company Name Here Industries makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:

Machine-hours		50,000
Fixed manufacturing overhead cost	$	1,400,500
Variable manufacturing overhead per machine-hour	$	3.75

During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the companys warehouse. The companys cost records revealed the following actual cost and operating data for the year:

Machine-hours		60,000
Manufacturing overhead cost	$	1,875,225
Inventories at year-end:
Raw materials	$	420,000
Work in process	$	110,000
Finished goods	$	1,050,000
Cost of goods sold	$	2,710,000
Do not use "$" or "," in answers. Round POHR to 2 decimal points, round all other numbers to the nearest dollar Compute the Companys predetermined overhead rate for the year.

Compute the Allocated overhead

Compute the underallocated or overallocated overhead for the year. (Answer Format: Number and then UnderAllocated or OverAllocated)

Based on your answer for C record the proper journal entry to close out overallocated/underallocated manufacturing overhead.

Journal Entry Format:

Debit: Account #

Credit: Account #

What is the impact of your journal entry on the Companys net income?

(Hint Answer options: Increase, Decrease, Stays the Same, No Change, Please ask someone else)