Mason Company and Rodd Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.

Mason Company	Rodd Company
Actual manufacturing overhead	$	145,000	$	223,700
Actual direct labor hours	21,000	22,000
Underapplied overhead	12,500
Overapplied overhead	23,000

Required:
a.	Compute the predetermined overhead rate for each company.(Round your answers to 2 decimal places.)

Per Direct Labor Hour
Mason Company	Rodd Company
Predetermined overhead rate

b.	Using T-accounts, record applied and actual overhead and the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.

Adjusting Entry for Mason Company:

Manufacturing Overhead	Cost of Goods Sold
adj.

Adjusting Entry for Rodd Company:

Manufacturing Overhead	Cost of Goods Sold
adj.
adj.