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A company allocates overhead at a rate of 150% of direct labor cost. Actual overhead cost for the current period is $475,000, and direct labor cost is $300,000. Prepare the entry to close over- or underapplied overhead to cost of goods sold.
a. Determine whether there is over- or underapplied overhead using T-account.
b. Prepare the entry to close over- or underapplied overhead to cost of goods sold.
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A company allocates overhead at a rate of 150% of direct labor cost. Actual overhead cost for the cu...
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