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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

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