Determining overhead rate, using direct labor cost, direct labor hour, and machine hour LO_6,7 methods The following information, taken from the books of Michaelangelo Company, represents the operations for the month of January:

Required:
1.Using the January data, ascertain the factory overhead application rates to be used during February, based on the following:

a. Direct labor cost

b. Direct labor hours

c. Machine hours 2. Prepare a schedule showing the total production cost of Job 1 565 under each method of applying factory overhead.
3. Prepare the entries to record the following for February operations:

a. Payment of total factory overhead.

b. Distribution of factory overhead to the departments.

c. Application of factory overhead to the jobs, using direct labor hours.
(Use the predetermined rate calculated in I . and separate accounts for each department.)

d. Closing of the applied factory overhead accounts.

e. Recording under- and overapplied factory overhead and closing the actual factory overhead accounts.

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Materials used. Direct labor cost. Direct labor hours. Machine hours.. Factory overhead. Bronzing Casting Finishing $20,000 $10,000 $10,000 $8,000 $5,000 $9,000 1,000 500 1,000 4,000 $20,000 5,000 2,025 $10,000 $16,200 The job cost system is used, and the February cost sheet for Job 1565 shows the following: Materials Direct labor... Direct labor hours. Machine hours. Bronzing Casting Finishing $20.00 $40.00 $20.00 $64.00 $60.00 $54.00 8 6 6 2 3 The following information was accumulated during February: Direct labor hours... Factory overhead. Bronzing Casting Finishing 15,000 $340,000 9,800 $200,000 20,000 $330,000