Question -
Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $275,660 for the year, and machine usage is estimated at 125,300 hours.
For the year $296,534 of overhead costs are incurred and 132,300 hours are used.
(a) Compute the manufacturing overhead rate for the year.
(b) What is the amount of under- or overapplied overhead at December 31?
(c) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.