Calculate and Use Overhead Rate

Selected data for the consulting department of Kingman Consulting, Inc., follow:

Estimated consulting overhead cost for the year	$810,000
Estimated direct labor cost for the year (@ $9/hr.)	405,000
Actual manufacturing overhead cost for May	52,000
Actual direct labor cost for May (2,400 hours)	44,000

Assuming that direct labor cost is the basis for applying consulting overhead,

a. Calculate the predetermined overhead rate.

Answer%

b. Prepare a journal entry that applies consulting overhead for May.

General Journal
Description	Debit	Credit
Answer	Answer	Answer
Answer	Answer	Answer

c. By what amount is consulting overhead over- or underapplied in May?

Consulting overhead was _____ by $___ in May.