Selected cost data for Antique Print, Co., are as follows:
Estimated manufacturing overhead cost for the year . . . . . $ 115,000
Estimated direct labor cost for the year . . . . . . . . . . . . . . . . . . 71,875
Actual manufacturing overhead cost for the year . . . . . . . . . 119,000
Actual direct labor cost for the year . . . . . . . . . . . . . . . . . . . . . 73,000
Requirements
1. Compute the predetermined manufacturing overhead rate per direct labor dollar.
2. Prepare the journal entry to allocate overhead cost for the year.
3. Use a T-account to determine the amount of under-allocated or over-allocated manufacturing overhead.
4. Prepare the journal entry to close the balance of the Manufacturing overhead account.