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

1. Compute the predetermined overhead rate for each company.

2. 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.