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In December 2012, A company established its predetermined overhead rate for movies produced during year 2013 by using the following cost predictions: overhead costs, $1,974,000, and direct labor costs, $470,000. At year end 2013, the company's records show that actual overhead costs for the year are $2,269,100. Actual direct labor cost had been assigned to jobs as follows.
A.Determine the predetermined overhead rate for year 2013.
B.Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and Determine whether overhead is overapplied or underapplied (and the amount) during the year.
C.Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
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The MRC purchased a bankrupt warehouse
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