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Please Help! At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $680,000, and
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At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $680,000, and direct materials costs, $400,000. At year-end, the company's records show that actual overhead costs for the year are $824,200. Actual direct materials cost had been assigned to jobs as follows. 1. Determine the predetermined overhead rate. 2\&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Determine the predetermined overhead rate. Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Journal entry worksheet Record entry to allocate underapplied /overapplied overhead. Note: Enter debits before creditsStep by Step Solution
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