Blue Sky Soda estimates total factory overhead costs of $$4,200,000$ and total direct labor costs of $$2,800,000$ for its first year of operations. During January, the company used $$80,000$ of direct labor cost in its Blending department and $$60,000$ of direct labor cost in its Bottling department.

Compute the predetermined overhead rate as a percentage of direct labor cost.

Prepare the journal entry to apply factory overhead to the Blending and Bottling departments.

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Required $2$

Prepare the journal entry to apply factory overhead to the Blending and Bottling departments.

Journal entry worksheet

$1$

Record the entry to apply overhead to production

Note: Enter debits before credits.

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