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Paddy's Parts manufactures specialized parts for oil rigs and relies on job...

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Accounting

Paddy's Parts manufactures specialized parts for oil rigs and relies on job costing to cost their inventory. At the beginning of the year, management determined the following related to part #81:
Budgeted
Total Overhead $350,000
Cost Allocation Base Machine Hours
Machine Hours 50,000
Direct Material per part $10
Beginning of Year Balances
Raw Material $20,000
Work in Process $15,000
Finished Goods $27,000
Cost of Goods Sold $0
At the end of the year, Paddy's produced 55,000 parts, using $495,000 of raw materials and $425,000 of overhead. In the process, they used 52,000 machine hours.
Required:
a) Calculate the predetermined allocation rate for manufacturing overhead.
b) Calculate the amount of overhead allocated. Close the factory overhead account by using the "write-off" to COGS approach. Show all of your journal entries. (NOTE: Only enter the amount of overhead allocated in the box below. Show your journal entry and any calculations related to it on your separately-submitted work paper)

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