(b) Prepare the entry to apply the overhead for the year. Account Titles and Exp

Question

(b) Prepare the entry to apply the overhead for the year.

Account Titles and Explanation

Debit

Credit

(c) Determine whether the overhead was under- or overapplied and by how much.

Account Titles and Explanation

Debit

Credit

xercise 16-13 (Part Level Submission) ombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each dient's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year Estimated overhead Actual overhead 990,000 1,040,800 40,000 40,900 Actual decorator hours he company uses Operating Overhead in place of Manufacturing Overhead Compute the predetermined overhead rate. (Round answer to 2 decimal places e.g. 25.57 Predetermined overhead rate per decorator hour g

Explanation / Answer

a) predetermined overhead rate 24.75 per decorator hour estimated operating overhead/ estimated decorator hours 990,000/40,000 24.75 b) Account titles and Explanation Debit Credit work in process 1012275 operating overhead 1012275 (24.75*40900) c) overhead 28525 underapplied (actualoverhead - operating overhead)

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