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1. Prepare the proper journal entries in an Excel file, including Notes, and properly update the T-accounts affected by each of the following journal entries.
1. $50,000 of direct labor was expended.2. $100,000 of direct materials were used.3. $80,000 was spent on overhead expenses.4. Using the predetermined overhead rate, $60,000 of overhead was charged to the period.
2. Was overhead underapplied or overapplied? Explain.
3. If there is anything left in the overhead account, what could be done with those dollars?
4. Based on this period's results, do you think the predetermined overhead rate should be changed for the rest of the year? Why or why not?
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