Perez Company and Rundle 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 Perez Company Rundle Company Actual manufacturing overhead $ 171,000 $ 283,600 Actual direct labor hours 24,000 28,000 Underapplied overhead 19,000 Overapplied overhead 21,000 Required Compute the predetermined overhead rate for each company Using T accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial a Per direct labor hour predetermined overhead rate perez company rundle company b Complete this question by entering your answers in the tabs below Required A Required B Using T accounts, record the entry to close the overapplied or underapplied overhead at the end of the accoun company, assuming the amounts are immaterial Adjusting Entry for Perez Company Manufacturing Overhead Cost of Goods Sold End Bal Adjusting Entry for Rundle Company Manufacturing Overhead Cost of Goods Sold End Bal

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 07, 2024

Perez Company and Rundle Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for

Perez Company and Rundle 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:

	Perez Company		Rundle Company
Actual manufacturing overhead	$	171,000	$	283,600
Actual direct labor hours		24,000		28,000
Underapplied overhead				19,000
Overapplied overhead		21,000

Required

Compute the predetermined overhead rate for each company.
Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.

	Per direct labor hour
predetermined overhead rate	perez company	rundle company

image text in transcribed

Complete this question by entering your answers in the tabs below. Required A Required B Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accoun company, assuming the amounts are immaterial. Adjusting Entry for Perez Company: Manufacturing Overhead Cost of Goods Sold End. Bal. Adjusting Entry for Rundle Company: Manufacturing Overhead Cost of Goods Sold End. Bal.