Question

James company uses job onder costing it applies over head cost to Jobs on the basis of direct labor cost for the current year the company estimates
that it will in cur $25,000 in direct labor cost and
$55.000 of manufacturing over head, During the year
$30.000 of direct laber costs was incurred
Actual over head costs in curred were
- in direct material Expense
$ 100,000
-in surance Expense
1O,000
-Depreciation. Expense
75,000
-indirect labor Expense
150.000
-utilities Expense
25,000
-rent Expense
200,000
Reguired:
A )compute the company's predetermined over head rate?
B )compute the amount of over or under applied
over head
C)prepares the necessarey yournal entry to close the over or under applied over head.


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Answer 1

Answer:

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