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2.cengagenow.com/lim/takeAssignment/takeAssignmentMain.dožinwoker assignmentsatakeAssignmentSessiont c ECO232BUS242From Internet Explore Chart of Accounts Factory Overhead General Journal Cay Company estsmates that total factory overthead costs wil be $624,059 for the year Direct labor hours are estimated to be 98,900 Required Determine (a) the predetermined factory overhead rate, (bj the amount of tactory overhead hours is 1,100 and Job 888 f the amount according to the predetormined overhead rate Refer to the Chart of Accounts for exact wording of account ies applied to Job 456me amount of direct labor of drect labor hours is 2,800, and (c) prepare the journal entry to apply factory overhead for Apei PreviousExplanation / Answer
Answer a)
Calculation of Predetermined Factory Overhead Rate
A
Total Overhead Cost
$ 624,059.00
B
Total Direct labor Hours
98900
C=A/B
Predetermined Overhead Rate
$ 6.31
Answer b)
Cost Allocation
(A) Direct Labor hours
(B) Predetermined Overhead rate
(C=A*B) Overhead Cost
Job 456
1100
$ 6.31
$ 6,941.00
Job 888
2800
$ 6.31
$ 17,668.00
Answer c)
Journal Entry
Date
Description
Debit
Credit
30-Apr
Work in Progress
$ 24,609.00
Manufacturing Overheads
$ 24,609.00
(Manufacturing Overheads Applied)
Answer a)
Calculation of Predetermined Factory Overhead Rate
A
Total Overhead Cost
$ 624,059.00
B
Total Direct labor Hours
98900
C=A/B
Predetermined Overhead Rate
$ 6.31
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