Question

rapp company estimates the company will incur $62,300 in overhead costs and 4,450 direct labor hours during the year. actual direct labor hours were 4,300. calculate the predetermined overhead allocation rate using direct labor hours as the allocation base and prepare the journal entry for the allocation of overhead.
fill in the labels and complete the formula below
total estimated overhead costs - total estimated direct labor hours = predetermined overhead allocation rate
$62,300 - 4,450 = $14 per direct labor hour
prepare the journal entry for the allocation of overhead
first, select the formula to calculate the overhead costs allocated. fill in the labels and complete the formula below
predetermined overhead allocation rate × total actual direct labor hours = allocated overhead costs
$14 × 4,300 = $60,200
prepare the journal entry for the allocation of overhead (record debits first, then credits. select the explanation on the last line of the journal entry table.)
date | accounts and explanation | debit | credit
work - in - process inventory | 60200 |
manufacturing overhead | | 60200

Explanation:

Step1: Calculate predetermined rate

Divide total estimated overhead costs by total estimated direct - labor hours. $\frac{62300}{4450}=14$ per direct labor hour.

Step2: Calculate allocated overhead

Multiply predetermined rate by actual direct - labor hours. $14\times4300 = 60200$.

Step3: Prepare journal entry

Debit Work - in - Process inventory and credit Manufacturing Overhead for the allocated amount of $60200$.

Answer:

Predetermined overhead allocation rate: $14$ per direct labor hour
Allocated overhead costs: $60200$
Journal entry:

Date	Accounts and Explanation	Debit	Credit
	Manufacturing Overhead		$60200$