Problem 3

Problem #3-Sport Geeve Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine hours. At the beginning of the year, management estimated that the company would incur 5146,200 in manufacturing overhead costs and 86,000 machine hours The compamy incurred actual total manufacturing costs of $171,000 and worked only 79,800 machine hours. Requirement l Compute the company's predjtermined overhead rate Determine the amount of underapplied or overapplied mandfacturing overhead for the peried Assuming that the entire amount of the underapplied or overapplied o goods sold, (a) prepare a journal entry overhead account. (b) Would this entry have a posiltive or negative effect on grou overhead is closed out to cost of to clese out the balance at year-end in the manufacturing margin? 4.17 DOLL