Samer Corp

question 164

Essay

Samer Corp. uses a job order cost accounting system. The following is selected information pertaining to costs applied to jobs during the year:
Samer Corp.'s predetermined overhead allocation rate is 60% of direct labor cost. At the end of the year, the company's records show that $189,000 of factory overhead has been incurred.
(a) Determine the amount of overapplied or underapplied overhead.
(b) Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.

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Definitions:

Iliac Crest

The uppermost edge of the ilium, one of the three bones that make up the human pelvis, important for muscle attachment and as a landmark in medical procedures.

Iliac Fossa

A concave surface on the inner side of the ilium, part of the pelvic bone, which serves as the origin for several muscles.

Medial Side

The side of a body part or structure that is closest to the midline of the body.

Ilium

The Ilium is the largest bone of the pelvis, constituting the uppermost and largest part of the hip bone.