Journalize the transactions . E2-13
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business . Each client ' s consultation is treated as a separate job . Overhead is applied to each job based on the number of decorator hours incurred . Listed below are data for the current year .
Estimated overhead $ 960,000 Actual overhead $ 982,800 Estimated decorator hours 40,000 Actual decorator hours 40,500
The company uses Operating Overhead in place of Manufacturing Overhead .
Instructions ( a ) Compute the predetermined overhead rate . ( b ) Prepare the entry to apply the overhead for the year .
( c ) Determine whether the overhead was under- or over applied and by how much .
P2-4A
Agassi Company uses a job order cost system in each of its three manufacturing departments . Manufacturing overhead is applied to jobs on the basis of direct lab (); cost in Department D , direct labor hours in Department E , and machine hours in Department K . In establishing the predetermined overhead rates for 2017 , the following estimates were made for the year .
During January , the job cost sheets showed the following costs and production data .
Instructions