Mason Company and Rodd Company both apply overhead to the Work in Process Inventory account...
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| Mason Company and Rodd Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. |
| Mason Company | Rodd Company | |||||
| Actual manufacturing overhead | $ | 145,000 | $ | 223,700 | ||
| Actual direct labor hours | 21,000 | 22,000 | ||||
| Underapplied overhead | 12,500 | |||||
| Overapplied overhead | 23,000 | |||||
| Required: | |
| a. | Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) |
| ||||||||||
| b. | Using T-accounts, record applied and actual overhead and the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. |
| Adjusting Entry for Mason Company:
Adjusting Entry for Rodd Company:
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