year , $ 322,000 of overhead costs are incurred and 130,000 hours are used . Instructions
( a ) Compute the manufacturing overhead rate for the year
( b ) What is the amount of under- or over applied overhead at December 31 ?
( c ) Prepare the adjusting entry to assign the under- or over applied overhead for the year to cost of goods sold .
E2-7 Crawford Corporation incurred the following transactions . 1 . purchased raw materials on account $ 46,300 .
2 . Raw materials of $ 36.000 were requisitioned to the factory . An analysis of the materials
3 . Factory labor costs incurred were $ 59,900 , of which $ 51,000 pertained to factory wages payable and $ 8,900 pertained to employer payroll taxes payable .
4 . Time tickets indicated that $ 54,000 was direct labor and $ 5,900 was indirect labor .
5 . Manufacturing overhead costs incurred on account were $ 80,500 . 6 . Depreciation on the company ' s office building was $ 8,100 .
7 . Manufacturing overhead was applied at the rate of 150 % of direct labor cost .
8 . Goods costing $ 88,000 were completed and transferred to finished goods .
9 . Finished goods costing $ 75,000 to manufacture were sold on account for $ 103,000 .
Instructions