Pittsburgh Pump, Inc., manufactures bilge pumps for small boats. It uses a job-order costing system.

Normal costing is used, and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,420,000, and management expects that 71,000 machine hours will be used. Sik Fee Sere as UN aa\h Required

a. Calculate the company’s predetermined overhead rate for the year.

b. Prepare journal entries to record the following events, which occurred during April.

1. Purchased pump impellers from Marion Corporation for $7,850 on account.

2. Processed requisition from the Gauge Department supervisor for 300 pounds of clear plastic.

The material cost $ .60 per pound when it was purchased.

3. Processed the Testing Department’s requisition for 300 feet of electrical wire, which is considered an indirect material. The wire cost $ .10 per foot when it was purchased.

4. Paid $800 in cash on electric utility bill.

. Incurred direct-labor costs of $75,000 in April.

f. Recorded April’s insurance cost of $1,800 for insurance on the cars driven by sales personnel.

The policy had been-prepaid in March.

= 7. Purchased metal tubing costing $3,000 on account.

8. Made cash payment of $1,700 on outstanding accounts payable.

9. Incurred indirect-labor costs of $21,000 during April.

10. Recorded depreciation of $7,000 on equipment for April.

11. Finished job G22 during April at a total cost of $1,100.

12. Used 6,900 machine hours during April.

13. Made sales on account for April of $179,000. The April cost of goods sold was $141,000.