question archive During company estimates that total factory overhead costs will be $750,000 for the year
During company estimates that total factory overhead costs will be $750,000 for the year
Subject:FinancePrice:2.89 Bought3
During company estimates that total factory overhead costs will be $750,000 for the year. Direct labor hours are estimated to be 300,000. For Darling company,
(a) Determine the predetermined factory overhead rate,
(b) Determine the amount of factory overhead applied to Jobs 50 and 51 in April using the data on direct labor hours from Practice Exercise 17-2A. and
(c) Prepare the journal entry to apply factory overhead to both jobs in April according to the predetermined overhead rate.
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a. $2.50 = $750,000/300,000 direct labor hours
b. Job 50 $30,000 = 12,000 hours × $2.50 per hour
Job 51 37,500 = 15,000 hours × $2.50 per hour
Total $67,500
c. Work in Process............................................................. 67,500
Factory Overhead............................................................... 67,500
