Answer:
A...=$6.6; B=$3,696 and $5,280
Explanation:
A. To calculate the predetermined factory overhead rate,
Given
overhead costs = $660,000
Direct labor hours = 100,000.
overhead rate = overhead cost/labor hours
= $660,000/100000
=$6.6
B. To calculate the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800
Given
Job 345 direct labor hours is 560
Job 777 direct labor hours is 800
Therefore
Factory overhead for job 345 = direct labor hours × predetermined factory overhead rate
= 560hours × $6.6
=$3,696
Factory overhead for job 777 = direct labor hours × predetermined factory overhead rate
= 800hours × $6.6
=$5,280
C. Journal entry for April
Add the overheads the two current jobs
$3,696 + $5,280= $8,976
Now record $8,976 in debit column against current work
record $8,976 in credit column against factory overhead
Account debit credit
1. current work $8,976
2. factory overhead $8,976
