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Question - Sniped Corporation bases it's predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 78,000 labor hours. The estimated variable manufacturing overhead was $9.99 per labor-hour and the estimated total fixed manufacturing overhead was 985,920. The actual manufacturing overhead for the year was $1,812,700 and the companies direct labor workers, worked a total of 80,000 labor hours.
-What is the companies predetermined overhead rate
-Also what is the manufacturing overhead applied
-Is the manufacturing overhead over or under applied and if so by how much?
-What is the journal entry to close the over or underapplied overhead to Cost of Goods sold?
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