At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $340,000, and direct materials costs, $200,000.At year-end, the company reports that actual overhead costs for the year are $348,800 and actual direct materials costs for the year are $200,000. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the predetermined overhead rate using estimated direct materials costs. Numerator: 1 1 Overhead Rate Denominator < Required 1 Overhead Rate Overhead rate Required 2 >

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead
costs, $340,000, and direct materials costs, $200,000.At year-end, the company reports that actual overhead costs for the year are
$348,800 and actual direct materials costs for the year are $200,000.
1. Determine the predetermined overhead rate using estimated direct materials costs
2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined
overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year.
3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Determine the predetermined overhead rate using estimated direct materials costs.
Numerator:
1
"
Overhead Rate
Denominator
< Required 1
Overhead Rate
Overhead rate
Required 2 >
Transcribed Image Text:At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $340,000, and direct materials costs, $200,000.At year-end, the company reports that actual overhead costs for the year are $348,800 and actual direct materials costs for the year are $200,000. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the predetermined overhead rate using estimated direct materials costs. Numerator: 1 " Overhead Rate Denominator < Required 1 Overhead Rate Overhead rate Required 2 >
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