Overhead Application, Journal Entries, Job Cost

At the beginning of the year, Dillon Company budgeted overhead of $180,000 as well as 15,000 direct labour hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,340; direct labour cost, $3,600. The average wage for Dillon Company employees is $10 per hour.

By the end of the year, 15,400 direct labour hours had actually been worked, and Dillon Company incurred the following actual overhead costs for the year:

Equipment lease	$ 5,000
Depreciation on building	20,000
Indirect labour	100,000
Utilities	15,000
Other overhead	45,000

Required:

1. Calculate the overhead rate for the year. Round your answer to the nearest cent. $fill in the blank e98b7ffab07b052_1 per direct labour hour

2. Calculate the total cost of Job K456. $fill in the blank e98b7ffab07b052_2

3. Prepare the journal entries to record actual overhead and to apply overhead to production for the year. If an amount box does not require an entry, leave it blank.

Date	Account & Explanation	Debit	Credit
	CashCost ControlCost of Goods SoldLease PayableOverhead Control	- Select -	- Select -
	Direct MaterialsLease PayableMachineryOverhead ControlWork in Process	- Select -	- Select -
	Accumulated DepreciationDepreciation ExpenseFinished GoodsOverhead ControlWork in Process	- Select -	- Select -
	Finished GoodsOverhead ControlSalaries ExpenseWages PayableWork in Process	- Select -	- Select -
	Lease ExpenseOverhead ControlSalaries ExpenseUtilities PayableWork in Process	- Select -	- Select -
	Common StockMiscellaneous ExpenseOther PayablesOverhead ControlWork in Process	- Select -	- Select -
	Accumulated DepreciationCost of Goods SoldOverhead ControlUtilities PayableWork in Process	- Select -
	Accumulated DepreciationCost of Goods SoldOverhead ControlWages PayableWork in Process		- Select -

4. Is overhead overapplied or underapplied? By how much?

OverappliedUnderapplied

$fill in the blank 7fced604bfa6048_2

5. Assuming that the normal cost of goods sold for the year is $700,000, what is the adjusted cost of goods sold? $fill in the blank 7fced604bfa6048_3