Teton UTV Works manufactures utility terrain vehicles (UTVs). The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours. Estimated manufacturing overhead for the year is $240,000. The firm employs 10 master assemblers, who constitute the direct labor force. Each of these employees is expected to work 2,000 hours during the year, which represents each employee’s practical capacity. The following events occurred during October.

a. The firm purchased 3,000 feet of stainless steel tubing at $11 per foot.
b. Twenty tires were requisitioned for production. Each tire cost $23.
c. Five gallons of lubricant were requisitioned for production. The lubricant cost $20 per gallon. Lubricant is treated as an indirect material.
d. Depreciation on the workshop building for October was $8,000.
e. A $400 utility bill was paid in cash.
f. Time cards showed the following usage of labor: 

Job number G60: 12 Thor model UTVs, 1,000 hours of direct labor
Job number C81: 20 Loki model UTVs, 700 hours of direct labor
The master assemblers (direct-labor personnel) earn $20 per hour.

g. The October property tax bill for $910 was received but has not yet been paid in cash.
h. The firm employs laborers (in addition to the master assemblers) who perform various tasks such as material handling and shop cleanup. Their wages for October amounted to $2,500.
i. Job number G60, which was started in September, was finished in October. The total cost of the job was $14,400.
j. Nine of the Thor model UTVs from job number G60 were sold in October for $1,500 each.

Required:
1. Calculate the firm’s predetermined overhead rate for the year.
2. Prepare journal entries to record the events described above.