Harwood Company uses a joborder costing system that applies overhead cost to jobs on the basis of machinehours. The company's
predetermined overhead rate of $ per machinehour was based on a cost formula that estimates $ of total manufacturing
overhead for an estimated activity level of machinehours.
Required:
Assume that during the year the company works only machinehours and incurs the following costs in the Manufacturing
Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year
and make the entry in your Taccounts.
A Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing
Overhead Taccount.
B Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Req
Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your accounts.
