Refer to the previous exercise. Assume the actual hours and cost data were:
|
Actual |
Paper |
Rock |
Scissors |
|
Manufacturing overhead |
$450,000 |
$400,000 |
$375,000 |
|
Direct labor cost |
$850,000 |
$700,000 |
$400,000 |
|
Direct labor-hours |
45,000 |
46,000 |
38,000 |
|
Machine-hours |
105,000 |
200,000 |
130,000 |
a. Compute overapplied or underapplied overhead for each company.
b. Prepare journal entries to transfer overapplied or underapplied overhead to Cost of Goods Sold for each company.