At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $760,000, and direct materials costs, $400,000.At year-end, the company reports that actual overhead costs for the year are $769,600 and actual direct materials costs for the year are $400,000. 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.

FINANCIAL ACCOUNTING
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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, $760,000, and direct materials costs, $400,000.At year-end, the company reports that actual overhead costs for the year are
$769,600 and actual direct materials costs for the year are $400,000.
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
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.
Actual overhead
Underapplied overhead
fact
Y
Factory Overhead
769,600
9,600
19,200
760,000 Applied overhead
< Required 1
< Prev
Required 3 >
4 of 13
Next >
Transcribed Image Text:roblems) At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $760,000, and direct materials costs, $400,000.At year-end, the company reports that actual overhead costs for the year are $769,600 and actual direct materials costs for the year are $400,000. 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 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. Actual overhead Underapplied overhead fact Y Factory Overhead 769,600 9,600 19,200 760,000 Applied overhead < Required 1 < Prev Required 3 > 4 of 13 Next >
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