The Following Data Are Available for Convoy Trucks Required:
A

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.

Correct Answer:

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