Question
Vaughn Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $295,395 for the year, and
Vaughn Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $295,395 for the year, and machine usage is estimated at 125,700 hours. For the year, $316,040 of overhead costs are incurred and 130,400 hours are used.
Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.)
Manufacturing overhead rate | $ | per machine hour |
What is the amount of under- or overapplied overhead at December 31?
Manufacturing Overhead | $ Overapplied or Underapplied? |
Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
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