Question

At the beginning of the year, Infodeo established Its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $2,021,000,and direct labor costs, $430,000. At year-end, the company's records show that actual overhead costs for the year are $2,549,800. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released Movies still in produetion $500,000 45,000 $545,000 Total actual direct labor eost 1. Determine the predetermined overhead rate for the year 2&3. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold ces Complete this question by entering your answers in the tabs below. Re 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate for the year Overhead Rate Choose Numerator Choose Denominator Overhead Rate Overhead rate Reg 2 and 3 <Prev 4 of 10 Next Q Search or enter address % & 2 3 4 5 R T P D G K X с V B mmand command option V Σ I

Answer 1

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Infoeo
Answer 1
Calculation of predetermined overhead rate:			Note
Overhead costs	2,021,000.00		A
Direct Labor cost	430,000.00		B
Predetermined overhead rate:	470.00%		C=A/B
Predetermined overhead rate is 470% of Direct Labor cost.
Answer 2 and 3
Actual Direct Labor costs	545,000.00		D
Predetermined overhead rate:	470.00%		See C
Overhead cost allocated	2,561,500.00		E=D*C
Actual Overhead cost incurred	2,549,800.00		F
Overhead over applied	11,700.00		G=E-F
Answer 4	Journal Entry
Account	Debit $	Credit $
Overhead costs	11,700.00		See G
Cost of Good sold		11,700.00	See G