Reference no: EM132837376

Question - Duff's Brewery uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under- or overallocation is written off to cost of goods sold. Below is the cost data for this problem:

Budgeted manufacturing overhead $900,000

Budgeted machine-hours 36,000

Budgeted labor hours 20,000

Actual manufacturing overhead $804,000

Actual machine hours 32,500

Actual labor hours 23,000

Required -

A) Compute the budgeted manufacturing overhead rate.

B) Prepare the journal entry applying the overhead.

C) Compute the amount of under- or overapplied of manufacturing overhead and state if it is under or overapplied.

D) Prepare the journal entry for disposing the under- or overapplied overhead to COGS.