At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $$2,226,000,$and direct labor costs, $$420,000.$ At year$-$end, the company$$s records show that actual overhead costs for the year are $$3,365,700.$ Actual direct labor cost had been assigned to jobs as follows.

Movies completed and released $ $600,000$

Movies still in production $37,000$

Total actual direct labor cost $ $637,000$

$1.$ Determine the predetermined overhead rate for the year.

$2$&$3.$ Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.

$4.$ Prepare the adjusting entry to allocate any over$-$ or underapplied overhead to Cost of Goods Sold.

Answer rating: 100% (QA)

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