The Following Data Are Available for Convoy Trucks Required:
A

question 101

Essay

The following data are available for Convoy Trucks:
$\begin{array}{lr}\text { Estimated machine hours } & 40,000 \text { hours } \\\text { Actual machine hours } & 5,000 \text { hours } \\\text { Estimated manufacturing overhead costs } & \$ 150,000 \\\text { Actual manufacturing overhead costs } & 13,000\end{array}$
Required:
a.Compute the predetermined overhead rate assuming the rate is based on machine hours.
b.Prepare the journal entry to record the applied overhead.

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Definitions:

Posted

In accounting, "posted" refers to the process of recording a financial transaction in a company's ledger, which then becomes part of the official financial records.

Accounting Cycle

A process that involves recording and processing all financial transactions of a company, from when the transaction occurs, to its representation in the financial statements.

Closing Entries

Entries recorded at the closing of an accounting cycle to shift balances from temporary to permanent accounts, readying the accounts for the upcoming period.

Post-Closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, serving to check the balance of debits and credits.