Reference no: EM132523641

Delights Auto Company uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:

Machine hours required to support estimated production 100,000

Fixed manufacturing overhead cost $650,000

Variable manufacturing overhead cost per machine hour $3.00

During the year, Job 2014 was started and completed. The following information was available for this job

Direct materials requisitioned. $680

Direct labour 21 hours at $10 per hour

Machine hour used 40

During the year, the company worked a total of 126,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,350,000

Question (a) Compute the predetermined overhead rate.

Question (b) Determine the accumulated manufacturing costs assigned to Job 2014

Question (c) Determine the underapplied or overapplied overhead. how to journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold