At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead
costs, $ and direct materials costs, $ At yearend, the company reports that actual overhead costs for the year are
$ and actual direct materials costs for the year are $
Determine the predetermined overhead rate using estimated direct materials costs
Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the
predetermined overhead rate. Determine whether overhead is over or underapplied and the amount for the year.
Prepare the entry to close any over or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Required
Required
Determine the predetermined overhead rate using estimated direct materials costs.
