Calculate the pre-determined overhead rate and put your answer in the appropriate T-Account. After recording all entries pertaining to the information above, review the account for overhead to determine if it is over or under-applied. Make the appropriate adjustment using the T-accounts to address this issue.

• Work done in previous periods included $30,000 of raw materials and $55,000 of conversion cost.
• This month, the company purchased $175,000 of raw materials, which gave them a total of $199,000 available for use. Actual material usage for the month was $162,000.
• The companys average wage rate for assembly workers is $27 per hour. This month, there were a total of 1,400 man-hours incurred for this type of work.
• Overhead is applied to production based on man hours. The budget for the month called for $300,000 of overhead and 1,500 man-hours. Actual overhead costs were tabulated at the end of the month and totaled $315,000.