Question

Cavy Company estimates that total factory overhead costs will be $583,412 for the year. Direct labor hours are estimated to be 92.900. a. Determine the predetermined factory overhead rate Round your answer to the nearest cent. b. Determine the amount of factory overhead applied to Job 456 the amount of direct labor hours is 1.400 and Jobs the amount of direct labor Theuns 3,300 . Job 456 Job c. Prepare the journal entry to apply factory overhead for ording to the predetermined overhead rate De here to HP Laptop (hp Do more from anywhere. All-day long.

Answer 1

a.

Estimated overhead costs = $583,412

Estimated direct labor hours = 92,900

Predetermined overhead rate = Estimated overhead costs/ Estimated direct labor hours

= 583,412/92,900

= $6.28 per direct labor hour

b.

Factory overhead applied for Job 456 = Direct labor hours used x Predetermined overhead rate

= 1,400 x 6.28

= $8,792

Factory overhead applied for Job 888 = Direct labor hours used x Predetermined overhead rate

= 3,300 x 6.28

= $20,724

c.

Total overhead applied = Factory overhead applied for Job 456+ Factory overhead applied for Job 888

= 8,792+20,724

= $29,516

General journal	Debit	Credit
Work in process inventory	$29,516
Factory overheads		$29,516
( To apply factory overheads)

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