Overhead Cost

ABC Company manufactured 100,000 units in 2014 and reported the following actual costs

Sandpaper $ 32,000

Leasing costs - plant $ 384,000

Materials handling (specialist) 320,000

Depreciation - equipment 224,000

Coolants & lubricants 22,400

Property taxes - equipment 32,000

Indirect manufacturing labor 275,200

Fire insurance - equipment 16,000

Direct manufacturing labor (general) ?

Direct material purchases 3,136,000

Direct materials, 1/1/2014 384,000

Direct materials, 12/31/2014 275,200

Finished goods, 1/1/2014 672,000

Sales revenue 12,800,000

Finished goods, 12/31/2014 1,280,000

Sales commissions 640,000

Work-in-process, 1/1/2014 96,000

Sales salaries 576,000

Work-in-process, 12/31/2014 64,000

Advertising costs 480,000

Administration costs 800,000

Other Relevant Information

The company used normal costing system and allocated the indirect cost based on direct labor cost.

Each unit required 2 hours of direct labor, the rate per hour is $10.88.

All purchases were on credit.

All salaries were accrued.

Material handling cost were performed by specialist workers.

Leasing costs are considered operational.

Fire insurance are paid in a monthly basis.

All other disbursement were paid in cash.

The amounts are totally and belong for 1 year.

Predetermine tax rate.

Required:

Using the information above, prepare all the necessary Journal Entries to record the Indirect Manufactured Cost for 2014.

Compute the amount of under or overallocated manufacturing overhead.