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Recording Actual Overhead and Overhead Applied to jobs During the month of August, Start Plastics applied overhead to jobs using an overhead rate of $3 per dollar of direct labor. Direct labor in August was $100,000. Actual overhead in August was $260,000. Assume that actual overhead was composed of the following items. Indirect materials $40,000 Indirect labor 80,000 Utilities 25,000 Depreciation 60,000 Repair expense 55,000 Total $260,000
Required:
a. Prepare a journal entry to record overhead applied to jobs.
b. Prepare a journal entry to record actual overhead.
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