Applying Factory Overhead

Salinger Company estimates that total factory overhead costs will be $390,000 for the year. Direct labor hours are estimated to be 30,000.

a. For Salinger 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 August, Salinger Company accumulated 900 hours of direct labor costs on Job 40 and 680 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August. $____________

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c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.

Debit Credit

________ $

________ $