Question

Bravo Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $250,000 and direct labor hours of 50,000. During the month of February 2017, Job A-1 incurred direct labor of 800 hours. Use this information to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job A-1 for the month. If no entry is required then write "No Entry Required." FormatB I U General Journal: Debit Credit Date Accounts

Answer 1

Answer:

Date	Accounts	Debit($)	Credit($)
28/2/17	Work in Progress-job A1 A/c Dr	$4,000
	To Factory overhead cost A/c		$4,000
	(To record overhead cost allocated to the job)

Note:

Overhead per hour= 250000/5000 = $5 per hour

Cost allocated to job = $ 5 x 800 hour = $4,000