Almerinda Company estimates that total factory overhead costs will be $1,750,000 for the year Direct labor hours are estimated to be 500,000 Required A For Almerinda Company, determine the predetermined factory overhead rate The rate used to apply factory overhead costs to the goods manufactured The rate is determined by dividing the budgeted overhead cost by the estimated activity usage at the beginning of the fiscal period using direct labor hours as the activity base B During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51 Determine the amount of factory overhead applied to Jobs 50 and 51 in April C Prepare the journal entry on Apr 30 to apply factory overhead to both jobs in April according to the predetermined overhead rate Refer to the Chart of Accounts for exact wording of account titles CHART OF ACCOUNTS Almerinda Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 560 Depreciation Expense Factory 590 Miscellaneous Expense 710 Interest E A For Almerinda Company, determine the predetermined factory overhead rate using direct labor hours as the activity base per direct labor hour B During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51 Determine the amount of factory overhead applied to Jobs 50 and 51 in April $ C Prepare the journal entry on Apr 30 to apply factory overhead to both jobs in April according to the predetermined overhead rate Refer to the Chart of Accounts for exact wording of account titles JOURNAL

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Almerinda Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000. Required: A. For

Almerinda Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000.

Required:

A.	For Almerinda Company, determine the predetermined factory overhead rate The rate used to apply factory overhead costs to the goods manufactured. The rate is determined by dividing the budgeted overhead cost by the estimated activity usage at the beginning of the fiscal period. using direct labor hours as the activity base.
B.	During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. Determine the amount of factory overhead applied to Jobs 50 and 51 in April.
C.	Prepare the journal entry on Apr. 30 to apply factory overhead to both jobs in April according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Almerinda Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
132	Work in Process
133	Factory Overhead
134	Finished Goods
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
241	Lease Payable
251	Wages Payable
252	Consultant Fees Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Selling Expenses
532	Insurance Expense
533	Utilities Expense
534	Office Supplies Expense
540	Administrative Expenses
560	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest E

A. For Almerinda Company, determine the predetermined factory overhead rate using direct labor hours as the activity base

________________________ per direct labor hour

B. During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. Determine the amount of factory overhead applied to Jobs 50 and 51 in April. $_______________________

C. Prepare the journal entry on Apr.30 to apply factory overhead to both jobs in April according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL