Renteria Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $305,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $322,000 of overhead costs is incurred and 130,000 hours are used.
Instructions
(1) Compute the manufacturing overhead rate for the year.
(2) What is the amount of under-or over applied overhead at December 31?
(3) Prepare the adjusting entry to assign the under- or over applied overhead for the year to cost of goods sold.