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At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the...

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Accounting

At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead
costs, $600,000, and direct materials costs, $300,000. At year-end, the company reports that actual overhead costs for the year are
$608,200 and actual direct materials costs for the year are $300,000.
Determine the predetermined overhead rate using estimated direct materials costs
2 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the
predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year.
Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Required 1
Required 3
Determine the predetermined overhead rate using estimated direct materials costs.
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