[The following information applies to the questions displayed below. In December

Question

[The following information applies to the questions displayed below. In December 2014, Infodeo established its predetermined overhead rate for movies produced during year 2015 by using the following cost predictions: overhead costs, $2,438,000,and direct labor costs, $460,000. At year-end 2015, the company's records show that actual overhead costs for the year are $2,331,700. Actual direct labor cost had been assigned to jobs as follows. $400,000 Movies completed and released Movies still in production Total actual direct labor cost $442,000 value: 3.57 points 1. Determine the predetermined overhead rate for year 2015. Overhead Rate Choose Numerator: Choose Denominator: Overhead Rate Overhead rate

Explanation / Answer

1 Estimated overhead costs/Estimated direct labor costs=Overhead rate 2438000/460000= 530% 2&3 Factory Overhead Actual overhead 2331700 2342600 Applied overhead 10900 Overapplied overhead 4 31-Dec Factory overhead 10900         Cost of goods sold 10900

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