Return to que Exercise 02-15 Factory overhead computed, applied, and adjusted LO P3, P4 points At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $290,000, and direct materials costs, $100,000. At year-end, the company's records show that actual overhead costs for the year are $1,574,200. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory Total actual direct materials cost $410,000 78,000 52,000 $540,000 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. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Reg 4 Determine the predetermined overhead rate. Choose Numerator: Estimated overhead costs $ Overhead Rate | Choose Denominator: / Estimated direct material costs $ = = = Overhead Rate Overhead rate 290% 290,000 100.000 Req 1 Req 2 and 3 Reg 4 Enter the overhead costs incurred and the amounts applied during the year using to determine whether overhead is overapplied or underapplied. Factory Overhead 1,574,200 1,566,000 Applied overhead Actual overhead 8,200 view udlisaLuull HSL Journal entry worksheet Record entry to allocate underapplied /overapplied overhead. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal