c. AZ manufactures different kinds of marine equipment. The company uses a job costing system and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,434,000, and management expect that 32,500 machine hours will be used. The following events occurred in April: (a) The firm purchased marine parts for $4425 on credit. (b) 250 kgs of plastic (raw material) was for production. The raw materials were purchased for $2 per kg (c) 10000 metres of indirect material was requisitioned for production. It was purchased for $1 per metre. (d) The month’s electricity bill of $15000 was paid in cash. (e) Direct labour costs incurred in April were $72,500. (f) April’s insurance cost was $7500. Insurance is purchased for the year on January 1 every year. (g) Additional raw materials were purchased for $3,500 on credit. (h) Indirect labour costs of $52500 were incurred during April. (i) Depreciation on equipment for April amounted to $105000. (j) Job number X25 consisting of 25 propellers, was finished during April. The total cost of the job was $15000. (k) During April, 4000 machine hours were used. (l) Sales on credit for April amounted to $175,000. The cost of goods sold in April was $69500.Construct the Manufacturing overhead account. Is the Manufacturing overhead account Over or Underapplied? Prepare the journal entry to adjust the Manufacturing Overhead

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Predetermined overhead rate Estimated manufacturing overhead estimated machine hours Predetermine... View the full answer