(SOLVED) During the month of August Star Plastics applied overhead to


Question Description:

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During the month of August, Star Plastics applied overhead to jobs using an overhead rate of $3 per dollar of direct labor. Direct labor in August was $100,000. Actual overhead in August was $260,000. Assume that actual overhead was composed of the following items.
Indirect materials………………………… $ 40,000
Indirect labor………………………………. 80,000
Utilities…………………………………….. 25,000
Depreciation………………………………. 60,000
Repair expense……………………………. 55,000
Total……………………………………. $260,000
Required
a. Prepare a journal entry to record overhead applied to jobs.
b. Prepare a journal entry to record actual overhead.

Answer

$19