Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 85,000 machine-hours would be required for the periods estimated level of production. The company also estimated $170,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $0.75 per machine-hour.

Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 85,000 machine-hours would be required for the periods estimated level of production. The company also estimated $170,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $0.75 per machine-hour.

Required:
1.	Compute the companys predetermined overhead rate. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Predetermined overhead rate

$ per MH

2.

Assume that during the year the company actually works only 60,100 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts. Compute the amount of overhead cost that would be applied to work in process for the year, and make the entry in your t-accounts given below: (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

Manufacturing Overhead

(Utilities)	16,000
(Insurance)	12,000
(Maintenance)	38,000
(Indirect materials)	9,000
(Indirect labor)	68,000
(Depreciation)	44,000
Balance

Work in Process

(Direct materials)	531,000
(Direct labor)	85,000
(Overhead)

3-a.	Compute the amount of underapplied or overapplied overhead for the year, and show the balance in your manufacturing overhead T-account. (Input the amount as a positive value. Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

(Click to select)UnderappliedOverapplied manufacturing overhead

$

3-b.	Prepare a journal entry to close out the balance in this account to cost of goods sold. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)

General Journal	Debit	Credit
(Click to select)Manufacturing overheadAccumulated depreciationFinished goodsCost of goods soldAccounts payableAccounts receivableRaw materialsWork in process inventory
(Click to select)Finished goodsCost of goods soldAccounts receivableRaw materialsAccumulated depreciationWork in process inventoryManufacturing overheadAccounts payable

Required: 1. Compute the companys predetermined overhead rate. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Predetermined overhead rate $ per MH 2. Assume that during the year the company actually works only 60,100 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts. Compute the amount of overhead cost that would be applied to work in process for the year, and make the entry in your t-accounts given below: (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.) Manufacturing Overhead ________________________________________ ________________________________________ (Utilities) 16,000 (Insurance) 12,000 (Maintenance) 38,000 (Indirect materials) 9,000 (Indirect labor) 68,000 (Depreciation) 44,000 ________________________________________ ________________________________________ Balance ________________________________________________________________________________ Work in Process ________________________________________ ________________________________________ (Direct materials) 531,000 (Direct labor) 85,000 (Overhead) ________________________________________ 3-a. Compute the amount of underapplied or overapplied overhead for the year, and show the balance in your manufacturing overhead T-account. (Input the amount as a positive value. Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.) manufacturing overhead $ 3-b. Prepare a journal entry to close out the balance in this account to cost of goods sold. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.) General Journal Debit Credit ________________________________________