Reference no: EM13598700

In December 2008, Dreamvision established its predetermined overhead rate for movies produced during year 2009 by using the following cost predictions: overhead costs, $1,500,000, and direct labor costs, $430,000. At year end 2009, the company's records show that actual overhead costs for the year are $1,790,000. Actual direct labor cost had been assigned to jobs as follows.

• Movies completed and released $200,000
• Movies still in production 54,000
• Total actual direct labor cost $254,000

1. Determine the predetermined overhead rate for year 2009. (Round your answer to the nearest whole percent.
2. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate in the T-account provided below.
3. Determine whether overhead is overapplied or underapplied (and the amount) during the year.
4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.