1. Ikerd Company applies manufacturing overhead to units on the basis of machine hours used....
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Accounting
1. Ikerd Company applies manufacturing overhead to units on the basis of machine hours used. For the upcoming year, overhead is estimated at $300,000 and machine hour usage is estimated at 125,000 hours. During the year, $325,000 of actual overhead costs were incurred and 130,000 actual machine hours were used.
a. Give the general journal entry required to apply the overhead costs to production for the year. b. What is the amount of over or under-applied overhead at the end of the year?
c. Prepare the entry to close the overhead account at the end of the year.
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