The company allocates any balance in the MOH to the other inventory accounts based on their ending balances.

Required: (please provide formulas)

1) compute the predetermied overhead rate for the year.

2) determine the amount of MOH underapied or overapplied.

3) prepare rhe journal entry to record the MOH applied for the period.

4) prepare the entry to dispose of the underapplied/ overapplied MOH.

Harrell Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead(MOH) to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at $350,000 and its direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year was $340,000 and the actual direct labor-hours incurred on jobs during the year was 90,000 hours. Assume that the company has the following accounts with ending balances as follows: Work-in-Process Finished Goods 30,000 50,000 80,000 Direct Lsce 10,000krg. Actua Cost of Goods Sold Ex MOHRAY The company allocates any balance in the MOH to the other inventory accounts based on their Actin nci90whours 4000hours ending balances