Reference no: EM132523644

Delights Auto Company uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:

Machine hours required to support estimated production 100,000

Fixed manufacturing overhead cost $650,000

Variable manufacturing overhead cost per machine hour $3.00

During the year, Job 2014 was started and completed. The following information was available for this job

Direct materials requisitioned. $680

Direct labour 21 hours at $10 per hour

Machine hour used 40

During the year, the company worked a total of 126,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,350,000

Question 1: Compute the predetermined overhead rate.

Question 2: Determine the accumulated manufacturing costs assigned to Job 2014

Question 3: Determine the underapplied or overapplied overhead. how to do journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold