1. Selected cost data for Classic Print Co. are as follows

Estimated manufacturing overhead cost for the year $125,000

Estimated direct labor cost for the year 78,125

Actual manufacturing overhead cost for the year 116,000

Actual direct labor cost for the year 67,000

A. Compute the predetermined overhead allocation rate per direct labor dollar.

B. Prepare the journal entry to allocate overhead cost for the year.

C. "Use a T-account to determine the amount of underallocated or overallocated

manufacturing overhead."

D. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead.