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Vaughn Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $283,725 for the year, and machine usage is estimated at 126,100 hours.
For the year, $303,850 of overhead costs are incurred and 130,200 hours are used.
Question 1 : Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.)
Question 2 : What is the amount of under- or overapplied overhead at December 31?
Question 3 : Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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