At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,890,000,and direct labor costs, $450,000. At year-end, the company’s records show that actual overhead costs for the year are $1,446,800. Actual direct labor cost had been assigned to jobs as follows.           Movies completed and released $ 300,000   Movies still in production   47,000   Total actual direct labor cost $ 347,000       1. Determine the predetermined overhead rate for the year. 2&3. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold

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, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,890,000,and direct labor costs, $450,000. At year-end, the company’s records show that actual overhead costs for the year are $1,446,800. Actual direct labor cost had been assigned to jobs as follows.
 

       
Movies completed and released $ 300,000  
Movies still in production   47,000  
Total actual direct labor cost $ 347,000  
 

 
1.
 Determine the predetermined overhead rate for the year.
2&3. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.
4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.

Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Req 4
Determine the predetermined overhead rate for the year.
Overhead Rate
Choose Numerator:
I Choose Denominator:
Overhead Rate
%3D
Overhead rate
< Req 1
Req 2 and 3 >
Req 1
Req 2 and 3
Req 4
Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and
determine whether overhead is overapplied or underapplied.
< Req 1
Req 4 >
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec. 31
Record entry
Clear entry
View general journal
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate for the year. Overhead Rate Choose Numerator: I Choose Denominator: Overhead Rate %3D Overhead rate < Req 1 Req 2 and 3 > Req 1 Req 2 and 3 Req 4 Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. < Req 1 Req 4 > Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal
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