At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during the year by using the following estimates: overhead costs, $2,484,000, and direct labor costs, $460,000. At year-end, the company's actual overhead costs for the year are $2,473,900 and actual direct labor costs for the year are $460,000. 1. Determine the predetermined overhead rate using estimated direct labor costs. 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to movies during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the predetermined overhead rate using estimated direct labor costs. Numerator: 1 1 1 Overhead Rate Denominator: Required 1 = = Overhead Rate Overhead rate Required 2 >

At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during the year by using the following estimates: overhead costs, $2,484,000, and direct labor costs, $460,000. At year-end, the company's actual overhead costs for the year are $2,473,900 and actual direct labor costs for the year are $460,000. 1. Determine the predetermined overhead rate using estimated direct labor costs. 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to movies during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the predetermined overhead rate using estimated direct labor costs. Numerator: 1 1 1 Overhead Rate Denominator: Required 1 = = Overhead Rate Overhead rate Required 2 >

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Description: At the beginning of the year, Mirmax set its predetermined overhead rate for movies produced during the year by using the followingestimates: overhead costs, $2,484,000, and direct labor costs, $460,000. At year-end, the company's actual overhead co

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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