Unit # 6 -Test Question #3 - Part C

Milsaps Company produces sportsmens digital scales. In preparing the current budget, Milsaps controller estimates a total of $270,000 in direct materials cost, $235,000 in direct labor cost, and $408,900 in manufacturing overhead costs. Since much of the production process requires skilled workers to assemble the scales, direct labor cost is used as the overhead application base. At the end of the period, Milsaps reported actual results as follows: direct materials cost of $313,000, direct labor cost of $204,000, and manufacturing overhead cost $350,270.

Please answer - PART C - What is the journal entry to close overhead if the amount is considered to be insignificant? (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Please use these labels for line item marked with a #1 -

(a) Your answer is correct. What is Milsaps' predetermined overhead rate for the year? Milsaps predetermined overhead rate 174