Storm Concert Promotions Valle Home Builders
Actual indirect materials costs $22,000 12,500
Actual indirect labor costs 46,000 46,500
Other overhead costs 17,000 47,000
Overhead applied 88,200 105,200
Required:
Storm Concert Promotions:
1. Determine whether overhead is overapplied or underapplied.
2. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Valle Home Builders:
3. Determine whether overhead is overapplied or underapplied.
4. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

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