Response to the following :
Refer to problem. Make the journal entry to close our E-Z-Boy's Manufacturing Overhead account if the balance is closed to Cost of Goods Sold.
Problem:
In the E-Z-Boy illustration on pages 000-000, actual manufacturing overhead was $210,000. Suppose instead that the actual manufacturing overhead was $225,000.
1. What would be the actual manufacturing overhead rate?
2. Is manufacturing overhead underallocated or overallocated? By how much?
3. Is Cost of Goods Sold too high or too low?