Reference no: EM13482435

A company produces bird food. During April, itproduced147 batches of food, each batch weighing 1,00 lbs. Toproduce this quantity of output, the company purchased and used148,450 lbs of direct material at a cost of $593,800. It alsoincurred direct labor costs of $17,600 for the 2,200 hours workedby employees on the food production crew. Manufacturingoverhead incurred at the food plant during April totaled $3,625, ofwhich $2,450 was considered fixed. The company's standardcost onformation for 1,000 lb batches of bird food is asfollows:

Direct materials standardprice................................. $4.20 per pound

Standard quantity allowed perbatch........................ 1,020 pounds

Direct labor standardrate....................................... $8.50per hour

Standard hours allowed perbatch.......................... 14 direct labor hours

fixed overheadbudgeted....................................... $2,800 per month

Normal level ofproduction.................................... 140 batches per month

Variable overhead applicationrate........................ $ 9.00 per batch

Fixed overhead applaication rate

($2,800 /140batches)........................................ 20.00 per batch

Total overhead applicationrate............................ 29.00 per batch

Record the journal entry to close any over-or underapplied overhead to Cost of Goods Sold.