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Star Promotions Valle Builders
Indirect materials $ 12,200 $ 7,300
Indirect labor 56,400 46,500
Other overhead 17,000 49,200
Overhead applied 92,300 97,600 Star Promotions
Problem 1-a. Determine whether overhead is overapplied or underapplied.
Problem 1-b. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
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Evaluate the Predetermined Overhead Rate
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This individual assignment is based on the TerraCycle Inc.
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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