Reference no: EM132593866

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, $2,160,000,and direct labor costs, $480,000. At year-end, the company's records show that actual overhead costs for the year are $1,554,900. Actual direct labor cost had been assigned to jobs as follows.

Movies completed and released $300,000

Movies still in production 48,000

Total actual direct labor cost $348,000

Question 1: Determine the predetermined overhead rate for the year.

Question 2: 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.

Question 3: Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.