A company produces bird food. During April, itproduced147 batches of food, each batch weighing 1,00 lbs. Toproduce this quantity of output, the company purchased and used148,450 lbs of direct material at a cost of $593,800. It alsoincurred direct labor costs of $17,600 for the 2,200 hours workedby employees on the food production crew. Manufacturingoverhead incurred at the food plant during April totaled $3,625, ofwhich $2,450 was considered fixed. The company's standardcost onformation for 1,000 lb batches of bird food is asfollows:
Direct materials standardprice................................. $4.20 per pound
Standard quantity allowed perbatch........................ 1,020 pounds
Direct labor standardrate....................................... $8.50per hour
Standard hours allowed perbatch.......................... 14 direct labor hours
fixed overheadbudgeted....................................... $2,800 per month
Normal level ofproduction.................................... 140 batches per month
Variable overhead applicationrate........................ $ 9.00 per batch
Fixed overhead applaication rate
($2,800 /140batches)........................................ 20.00 per batch
Total overhead applicationrate............................ 29.00 per batch
Record the journal entry to close any over-or underapplied overhead to Cost of Goods Sold.