The ABC Pty Ltd has provided the following informationfor the year just ended:

Budgeted direct labour cost 60 000 hours @ $20 per hour.

Actual direct labour cost 65 000 hours @ $25 per hour.

Actual manufacturing overhead:

Indirect labour 20000,Supervisory salaries 150 000,Electricity 30 000,Insurance 22 000 Factory rent 300 000 and Indirect material: Beginning inventory, 1 January $ 60 000 Purchases 80 000 Ending inventory, 31 December 65 000.

Budgeted manufacturing overhead $950 000

Question 1

Calculate the firm's predetermined overhead rate, which was based on direct labour hours.

Question 2 (a)

Calculate the overapplied or underapplied overhead for the year.

Question 2 (b)

make a journal entry to close the manufacturing overhead account to cost of goods sold.