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RUDIKE [14]
3 years ago
12

Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is b

ased on total estimated overhead costs of $280,000 and direct labor hours of 25,000. During the month of February 2019, Job 2-1 incurred direct labor of 450 hours. Use this information to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job 2-1 for the month. If no entry is required then write "No Entry Required."
Business
1 answer:
natta225 [31]3 years ago
6 0

Answer:

WIP 5,040

Factory Overhead 5,040

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

280,000/25,000 = 11.2 per labour hor

Job labour hors x rate = overhead applied

450 x 11.2 = 5,040

We will increase the work in process, because there is no information about the job being complete.

And we will use the factory overhead account to post the applied overhead

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According to Okun's law , 12% loss of gdp.

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