During the month of August Star Plastics applied overhead to
During the month of August, Star Plastics applied overhead to jobs using an overhead rate of $3 per dollar of direct labor, direct labor in August was $90,000. Actual overhead in August was $230,000. Assume that actual overhead was composed of the following items.
Indirect materials.......... $30,000
Indirect labor ............ 70,000
Utilities ............... 20,000
Depreciation ............. 60,000
Repair expense ............ 50,000
Total ................ $230,000

Required
a. Prepare a journal entry to record overhead applied to jobs.
b. Prepare a journal entry to record actual overhead.

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