Disposition of Overapplied Overhead
At the end of 20×9, Compumatics had compiled a total of 89,920 labor hours worked. The actual overhead incurred was $1,143,400.
1. Using the overhead rate computed in E 14, determine the total amount of overhead applied to operations during 20×9.
2. Compute the amount of overapplied overhead for the year.
3. Will the Cost of Goods Sold account be increased or decreased to correct the over-application of overhead?