Solomon Company and Stuart 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.

	Solomon Company				Stuart Company
Actual manufacturing overhead	$	168,000			$	239,600
Actual direct labor hours		26,000				23,000
Underapplied overhead						16,500
Overapplied overhead	$	20,500

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.

Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.)

	Per Direct Labor Hour
	Solomon Company	Stuart Company
Predetermined overhead rate

• Required A

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.

Adjusting Entry for Solomon Company:
Manufacturing Overhead					Cost of Goods Sold
Adjusting Entry for Stuart Company:

Solomon Company and Stuart 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. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Solomon Company $168,000 26,000 Stuart Company $239, 600 23,000 16,500 $ 20,500 Required a. Compute the predetermined overhead rate for each company. b. 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. 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 accounting period for each company, assuming the amounts are immaterial Adjusting Entry for Solomon 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 accounting period for each company, assuming the amounts are immaterial. Adjusting Entry for Solomon Company: Manufacturing Overhead Cost of Goods Sold Adjusting Entry for Stuart Company: Manufacturing Overhead Cost of Goods Sold