Prepare the journal entry to eliminate the over- or

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Reference no: EM13573264

The predetermined overhead allocation rate for Forsythe, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were:

* Direct materials $250,000

*Direct Labor $410,000

Indirect materials 55,000

indirect labor 125,000

sales commissions 50,000

factory depreciation 170,000

property taxes, factory 15,000

factory utilies 35,000

Advertising 62,500

Factory equipment rental 100,000

a) Calculate the predetermined overhead allocation rate (show calculation)

b) Calculate the overhead cost applied during the year (show calculations)

c) Determine the amout of over- or underapplied overhead (show calculation)

d) Prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount. (show calculation)

Reference no: EM13573264

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