Grayson Company estimates that total factory overhead costs will be $100,000 for the year. Direct labor hours are estimated as 25,000 for the year. The company has two completed jobs at the end of January, Jobs 101 and 102. The direct labor hours and units produced for these jobs are as follows:

a. Using the information provided, determine:
1. The predetermined factory overhead rate using direct labor hours as the activity base.
2. The amount of factory overhead applied to Jobs 101 and 102 in January.

b. Prepare the journal entry to apply factory overhead to both jobs in January using the predetermined overhead rate from (a).

c. Using the information provided along with the job cost information from Check Up Corner 16-1, determine:
1. The balance on the job cost sheets for Jobs 101 and 102 at the end of the month.
2. The cost per unit for Jobs 101 and 102.

Transcribed Image Text:

Job 101 Job 102 Direct Labor Hours 700 600 Units Produced 500 1,000