Reference no: EM132530139

Tomek Company uses a job costing system that applies factory overhead on the basis of direct labor hours. The company's factory overhead budget for the current year included the following estimates:

Budgeted total factory overhead $585,000

Budgeted total direct labor hours 65,000

At the end of the year, the company shows these results:

Actual factory overhead $605,250

Actual direct labor hours 65,500

Required:

Question 1. Compute the firm's predetermined factory overhead rate for the current year.

Question 2. Calculate the amount of overapplied or underapplied overhead.

Question 3. What is a journal entry to transfer the underapplied or overapplied overhead to the Cost of Goods Sold account.