Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $348,189 for the year, and machine usage is estimated at 125,700 hours.
For the year, $444,755 of overhead costs are incurred and 131,500 hours are used.
Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.)
What is the amount of under- or overapplied overhead at December 31?
Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
|1)||manufacturing overhead rate|
|Estimated overhead costs/estimated machine usage|
|2.77||per machine hour|
|2)||Actual manufacturing overhead incurred||444,755|
|overhead under applied||89,705|
|Cost of goods sold||89,705|
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