Question
Mountain Snow Manufacturing applies factory overhead at a rate of 125% of direct labor. In the month of May, the company used $250,000 of direct
Mountain Snow Manufacturing applies factory overhead at a rate of 125% of direct labor. In the month of May, the company used $250,000 of direct materials and $200,000 in direct labor for the period. Mountain Snow Manufacturing incurred actual factory overhead cost of $350,000. Is the Factory Overhead account over or under stated? Record the journal entries necessary for only applying applied overhead for the period and the adjustment of the overhead account for the month of May. (13 points)
Circle whether over - or under-applied: Under applied or Over Applied
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