Answer:
Storm Concert Promotions
It was overapplied as the amount appliued exceed the actual overhead cost so we decrease the cost of good.
manufacturing overhead 3,200 debit
COGS 3,200 credit
Valle Home Builders
It was underapplied as the amount applied was below the actual overhead cost. We must increase the cost of our good sold to recognize the extra cost.
COGS 1,200 debit
manufacturing Overhead 1,200 credit
Explanation:
Storm Concert Promotions
Actual indirect materials costs 22,000
Actual indirect labor costs 46,000
Other overhead costs 17,000
Total overhead 85,000
Overhead applied 88,200
Overapplied overhead 3,200
Valle Home Builders
Actual indirect materials costs 12,500
Actual indirect labor costs 46,500
Other overhead costs 47,000
Total overhead 106,000
Overhead applied 105,200
Overhead underapplied 1,200
