Disposition of Overapplied OverheadAt the end of 20×9, Compumatics had compiled a total of

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?

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