Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $315,000 for the year, and machine usage is estimated at 125,000 hours.
For the year, $391,572 of overhead costs are incurred and 131,100 hours are used.
Compute the manufacturing overhead rate for the year.
What is the amount of under- or overapplied overhead at December 31?
Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.