Zellers Canada Itd estimates that annual manufacturing overhead costs will be $$500,000.$ UCW allocates overhead to jobs based on machine hours, and it expects that $300,000$ units to be produced and $100,000$ machine hours will be required for the year. 

 

Calculate the predetermined overhead rate.

Job $153$ used a total of $2,000$ machine hours to make $4,000$ units. Make the journal entry to record manufacturing overhead applied to job $153.$

Assume UCW incurs actual manufacturing overhead costs of $$470,000$ and applies overhead of $$510,000$ for the year. Account balances are as follows: WIP inventory, $$25,000$; finished goods inventory, $$25,000$; and cost of goods sold, $$50,000.$ Is overhead overapplied or underapplied by how much? Using COGS method, provide journal for the closing of over or underapplied.

$7.$

Answer rating: 100% (QA)

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