Applying Factory Overhead Hatch Company estimates that total factory overhead costs will be $280,000 for the year. Direct labor hours are estimated to be 20,000. a. For Hatch Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two- decimal places. per direct labor hour b. During May, Hatch Company accumulated 740 hours of direct labor costs on Job 200 and 660 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. c. Prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate. If an amount box does not require an entry. leave it blank. 88 Entries for Direct Labor and Factory Overhead Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows: Job 11-101 $2,350 1,600 Job 11-102 Job 11-103 1,260 Job 11-104. 1,930 Job 11-105 Factory supervision 1,260 1,090 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $15 per hour, a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank. b. Journalize the entry to apply factory overhead to production for June. If an amount box does not require an entry, leave it blank. 88