Estimated manufacturing overhead $ 500,000 Actual manufacturing overhead $ 550,000 Estimated direct labor hours 10,000 hours Actual direct...

4.1 Ratings (865 Votes)

13	Calculation of predetermined overhead allocation rate
	Estimated manufacturing overhead (A)	$ 500,000.00
	Estimated direct labor hours (B)	10,000.00
	predetermined overhead allocation rate ( C)=(A)/(B)	$ 50.00


14	Calculation of the amount of overhead allocated during the year.
	Actual direct labor hours (A)	10,500.00
	predetermined overhead allocation rate (B)	$ 50.00
	The amount of overhead allocated during the year ( C)=(A)*(B)	$ 525,000.00

	Journal Entry
		Debit	Credit
	Work-in-Process Inventory	$ 525,000.00
	Manufacturing Overhead		$ 525,000.00
	To Record to allocate overhead cost for the year.

15	Calculation of amount of underallocated or overallocated overhead
	Underallocated overhead=$550,000-$525,000	$ 25,000.00

	Journal Entry
		Debit	Credit
	Cost of Goods Sold	$ 25,000.00
	Manufacturing Overhead		$ 25,000.00

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!

Become a Member

Other questions asked by students

13.	Calculate the predetermined overhead allocation rate usingdirect labor hours as the allocation base.
14.	Determine the amount of overhead allocated during the year.Record the journal entry.
15.	Determine the amount of underallocated or overallocatedoverhead. Record the journal entry to adjust ManufacturingOverhead.