The following information belongs to Glass Works Company 2014.

Budgeted direct labor cost: --------------------------------75,000 hours, $16 per hour

Actual direct labor cost: ------------------------80,000 hours at $17.50 per hour.

Budgeted Overall Production Cost: --------------------- $997,500

Actual Production Cost:
Depreciation --------------------------------------------- ---- $240,000
Property taxes------------------------------------------ ------ ----12,000
Indirect Birth -------------------------------------- ---------- --82,000
Audit Salaries ----------------------------------- ---------200,000
Vehicles--------------------------------------- ---------- ------------ 59,000
Insurance -------------------------- ----------------------- ---------30,000
Space Rentals --------------- -------------------------------- --- 300,000
Indirect material ------------ ------------------------------------ --- 79,000

Required
(i) Calculate the firm's predetermined overhead rate based on direct working hours. (3 points)
(ii) Calculate the over-applied or under-applied overhead for 2014. (4 points)
(iii) Prepare a journal entry to settle Production Overhead Account to Cost of Goods Sold. (3 points)

Answer rating: 100% (QA)

i Predetermined Overhead Rate based on direct labor hours step1 Calculate the estimated overhead costs by adding up all the indirect costs given in th... View the full answer