Chapter 15-1

In December 2016, Infodeo established its predetermined overhead rate for movies produced during 2017 by using the following cost predictions: overhead costs, $2,160,000,and direct labor costs, $480,000. At year-end 2017, the companys records show that actual overhead costs for the year are $1,101,500. Actual direct labor cost had been assigned to jobs as follows.

1. Determine the predetermined overhead rate for 2017. 2&3. Enter the overhead costs incurred and the amounts applied 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.

Movies completed and released Movies still in production Total actual direct labor cost $200,00e 47,000 $247,00e Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate for 2017 Overhead Rate Choose Numerator: Choose Denominator: - Overhead Rate Overhead rate Req 1 Req 2 and 3Req 4 Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied Req 1 Req 2 and 3 Req 4 Prepare the adiusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold View transaction list Journal entry worksheet Record entry to close underapplied /overapplied overhead. Note: Enter debits before credits Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal