Meed Company estimates the company will incur $65,000 in overhead costs and 5,000 direct labor hours during the year. Actual direct labor hours were 4,550. Calculate the predetermined overhead...

Meed Company estimates the company will incur $65,000

in overhead costs and 5,000 direct labor hours during the year. Actual direct labor hours were 4,550. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base, and prepare the journal entry for the allocation of overhead.

Calculate the predetermined overhead allocation rate.

Fill in the labels and complete the formula below.

		Predetermined overhead
÷	=	allocation rate
÷	=		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.

	×		=	Allocated overhead costs
	×		=

Prepare the journal entry for the allocation of overhead.

Date	Accounts and Explanation	Debit	Credit

Jun 09, 2022

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Meed Company estimates the company will incur $65,000 in overhead costs and 5,000 direct labor hours during the year. Actual direct labor hours were 4,550. Calculate the predetermined overhead...

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