141. The following calendar year information about the Tahoma Corporation is available on December 31:
Advertising expense
|
$ 28,800
|
Depreciation of factory equipment
|
42,320
|
Depreciation of office equipment
|
10,800
|
Direct labor
|
142,600
|
Factory utilities
|
35,650
|
Interest expense
|
6,650
|
Inventories, January 1:
|
|
Raw materials
|
3,450
|
Goods in process
|
17,250
|
Finished goods
|
35,650
|
Inventories, December 31:
|
|
Raw materials
|
2,300
|
Goods in process
|
20,700
|
Finished goods
|
31,050
|
Raw materials purchases
|
132,450
|
Rent on factory building
|
41,400
|
Indirect labor
|
51,750
|
Sales commissions
|
16,500
|
|
|
The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.
142. The predetermined overhead allocation rate for Forsythe, Inc. is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were:
Direct materials
|
$250,000
|
Direct labor
|
410,000
|
Indirect materials
|
55,000
|
Indirect labor
|
125,000
|
Sales commissions
|
50,000
|
Factory depreciation
|
170,000
|
Property taxes, factory
|
15,000
|
Factory utilities
|
35,000
|
Advertising
|
62,500
|
Factory equipment rental
|
100,000
|
(A. Calculate the predetermined overhead rate and calculate the overhead applied during the year.
(B. Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.
143. A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process, $42,000 to jobs completed but not sold, and $66,000 to jobs finished and sold. At year-end, the company's Factory Overhead account has a credit balance of $9,000, which is not a material amount. What entry (if any) should the company make at year-end related to this overhead balance?