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33) Actual and Applied Manufacturing Overhead. Quincy Company incurred the following actual overhead costs for the month of February.

33) Actual and Applied Manufacturing Overhead. Quincy Company incurred the following actual overhead costs for the month of February.

Indirect materials

$335,000

Indirect labor

$275,000

Factory depreciation

$  18,000

Factory utilities

$   9,500

Overhead is applied based on a predetermined rate of $2 per direct labor dollar (200 percent of direct labor cost), and direct labor costs were $300,000 for the month.

Required:

a.                  P r e p a r e a journal entry to record actual overhead costs for February. Assume indirect labor costs and utilities will be paid next month.

b.                 P r e p a r e a journal entry to record manufacturing overhead applied to jobs during February.

c.                  C r e a t e a T-account for manufacturing overhead, post the appropriate information from parts a and b to this account, and calculate the ending balance.

d.                 Is manufacturing overhead overapplied or underapplied? Using the balance in the manufacturing overhead account calculated in part c, prepare the journal entry to close manufacturing overhead to cost of goods sold.

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