Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $353,920 for the year, and machine usage is estimated at 126,400 hours.
For the year, $368,283 of overhead costs are incurred and 130,100 hours are used.
Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)
Manufacturing overhead rate
_________per machine hour
(b) What is the amount of under or over-applied overhead at December 31?
(c) Prepare the adjusting entry to assign the under or over-applied overhead for the year to cost of goods sold.