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 overhead allocation 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 underallocated or overallocated manufacturing overhead.

4. Prepare the journal entry to adjust for the underallocated or overallocated man-ufacturing overhead.