Exercise 15-16 Factory overhead computed, applied, and adjusted LO P3, P4 In December 2016, Infodeo established...

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Exercise 15-16 Factory overhead computed, applied, and adjustedLO P3, P4 In December 2016, Infodeo established its predeterminedoverhead rate for movies produced during 2017 by using thefollowing cost predictions: overhead costs, $1,680,000, and directlabor costs, $480,000. At year-end 2017, the company’s records showthat actual overhead costs for the year are $1,652,000. Actualdirect labor cost had been assigned to jobs as follows.
Movies completed and released $ 425,000
Movies still in production 50,000
Total actual direct labor cost $ 475,000
1. Determine the predetermined overhead rate for 2017.
2&3. Enter the overhead costs incurred and the amountsapplied during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.
4. Prepare the adjusting entry to allocate any over- orunderapplied overhead to Cost of Goods Sold.

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As there is no other Basis for allocation of OverHead given Weshould Use per 1 of Direct Labour Costie1 Determine the predetermined See Answer

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Exercise 15-16 Factory overhead computed, applied, and adjustedLO P3, P4 In December 2016, Infodeo established its predeterminedoverhead rate for movies produced during 2017 by using thefollowing cost predictions: overhead costs, $1,680,000, and directlabor costs, $480,000. At year-end 2017, the company’s records showthat actual overhead costs for the year are $1,652,000. Actualdirect labor cost had been assigned to jobs as follows.Movies completed and released $ 425,000Movies still in production 50,000Total actual direct labor cost $ 475,0001. Determine the predetermined overhead rate for 2017.2&3. Enter the overhead costs incurred and the amountsapplied during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.4. Prepare the adjusting entry to allocate any over- orunderapplied overhead to Cost of Goods Sold.