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Anonymous asked in Education & ReferenceHomework Help · 1 month ago

Accounting Math Help? ?

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  • 1 month ago

    predetermined overhead rate (PDOR)

    = estimated overhead / allocation base

    = $135,000 / 27,000 machine hours

    = $5.00 / machine hour

    overhead applied during year

    = PDOR x actual machine hours

    = ($5.00 / machine hour) x (29,000 machine hours)

    = $145,000

    actual overhead - applied overhead

    = $143,700 - $145,000

    = - $1,300

    Actual overhead was less than applied overhead, so overhead was overapplied by $1,300

    Journal entry:

    Credit 'Manufacturing overhead' ……….….... $1,300

    Debit 'Cost of good sold' …….…...... $1,300

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