A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The adorney overhead using machine hours, and estimates it will use 1,600 machine hours in the next Deing the month of June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2. Compute the predetermined overhead rate to be used to apply overhead during the year Predetermined Overhead Rate = 2. Determine how much overhead June. Job 1 Job 2 Total = 80 hours 70 hours 150 hours Estimated Overhead Costs Estimated Activity Base $150 per machine hour Machine Hours Used x Predetermined OH rate x $150 per hour x $150 per hour x $150 per hour should be applied to Job 1 and to Job 2 for 3. Prepare the journal entry to record overhead applied for June. General Journal $240,000 1,600 machine hours Work in Process Inventory Factory Overhead = OH Applied = $12,000 OH applied = $10,500 OH applied = $22,500 OH applied Debit 22,500 Credit 22,500