Abbott Lamp Corporation manufactures BOTH Mountain Dew Lamps AND Coca-Cola Lamps, starts 1/1/20. On 1/1/20, Erin Rogers ESTIMATES the following MOH costs:

Factory Utilities $100

Factory Rent $1,000

Equipment Depreciation $1,000

Indirect Materials/grease $100

Abbott Lamp Corporation uses MACHINE HOURS to allocate Utilities, Rent, Depreciation and grease.

Erin Rogers also estimates a total of 100 machine hours and for the year.

1. Compute the Predetermined Overhead RATE (4 pts).

2. On 1/1/20, ALC obtains a lamp-making machine for $8,000 on account. It has a 0 salvage value and a useful life of 10 years. Please give the journal entry to describe this transaction (3 pts).
3. On 1/1/20, ALC purchases on account 200 Mountain Dew Cans for $200. It also purchases on account 200 Coca-Cola Cans for $1,000. Please give the journal entry (4 pts).
4. On 1/1/20, ALC purchases on account 1,000 pieces of paper for $1,000 and 1,000 pounds of grease for $1,000 on account. Please give the journal entry to describe this transaction (3 pts).
5. During the year, ALC Mountain Dew Lamp workers, requisitioned out 100 Mountain Dew Cans and 100 pieces of paper. Give the journal entry (3 pts).
6. During the year, ALC Coca-Cola Lamp workers requisitioned out 100 Coca-Cola cans and 100 pieces of paper, they also requisitioned out 80 pounds of grease and put the grease into the machines. Give the appropriate journal entry (5 pts).
7. During the year, ALC paid the following to its workers:

Administrative Salaries to CEO, accountant, etc.. $2,000

Mountain Dew Lamp workers for direct labor (80 dlh * $5/dlh) $400

Coca-Cola Lamp workers for direct labor (100 dlh * $10/dlh) $1,000

Coca-Cola Lamp workers for clean up/set up time (6 hours*$10/hour) $60

Give the journal entry to describe this transaction (8 pts).