Hi!

My questions is:

Overhead costs of $1,521,000 and direct labor costs of $1,170,000. At the end of the year, actual overhead costs were $1,531,500. Also, the following amounts of direct labor had been incurred for jobs during the year.

Goods in Process $135,000
Finished Goods $600,000
Goods that were sold $450,000
____________________________

Total $1185,000


a. What was the predetermined overhead rate for 2007?
b. Was overhead overapplied or underapplied during 2007?
c. Was the amount material or immaterial and why?
d. Prepare the adjusting entry to allocate any overapplied or underapplied overhead.

Thank you for any help you can give
Julie

You're lucky I'm bored.



a. What was the predetermined overhead rate for 2007?


OH (Estimated) / DL = POHR
1,521,000 / 1,170,000 = 1.3



b. Was overhead overapplied or underapplied during 2007?


POHR * WIP = OA
1.3 * 135,000 = 175,500

Well, from my calculations in which could be so far off I may have done more harm than good, it looks like the overhead was over-applied.

I don't understand question c and question d I just don't want to do.