Concept explainers
Tombert Decorating uses a
Estimated overhead | $960,000 |
Actual overhead | $982,800 |
Estimated decorator hours | 40,000 |
Actual decorator hours | 40,500 |
The company uses Operating Overhead in place of Manufacturing Overhead.
Instructions
(a) Compute the predetermined overhead rate.
(b) Prepare the entry to apply the overhead for the year.
(c) Determine whether the overhead was under- or overapplied and by how much.
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