Reference no: EM132520378

At the beginning of the year, Complete It, Inc. established its predetermined overhead rate for applying factory overhead to its inventory produced during the year by using the following predicted costs:

Estimated Factory Overhead           $1,200,000

Estimated Direct Labor                   $ 800,000

At year-end, the company's records show the following actual costs:

Actual Factory Overhead            $1,232,000

Actual Direct Labor                    $ 820,000

Required:

Question (a) Determine the predetermined overhead rate for the year.

Question (b) Determine the amount of factory overhead costs applied to Work in Process Inventory during the year.

Question (c) Determine the amount of overapplied or underapplied overhead.

Question (d) Prepare the adjusting journal entry to close out the overapplied or underapplied overhead, assuming that the amount is immaterial.