At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during...

 

Transcribed Image Text:

At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during the year by using the followin estimates: overhead costs, $2,193,000, and direct labor costs, $430,000. At year-end, the company's actual overhead costs for the year are $2,182,800 and actual direct labor costs for the year are $430,000. 1. Determine the predetermined overhead rate using estimated direct labor costs. 2. Enter the actual overhead costs Incurred and the amount of overhead cost applied to movies during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during the year by using the followin estimates: overhead costs, $2,193,000, and direct labor costs, $430,000. At year-end, the company's actual overhead costs for the year are $2,182,800 and actual direct labor costs for the year are $430,000. 1. Determine the predetermined overhead rate using estimated direct labor costs. 2. Enter the actual overhead costs Incurred and the amount of overhead cost applied to movies during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold.

Answer rating: 100% (QA)

1 To determine the predetermined overhead rate using estimated direct labor costs divide the estimat... View the full answer