Blue Sky Soda estimates total factory overhead costs of $$4,260,000$ and total direct labor costs of $$2,840,000$ for its first year of

operations. During January, the company used $$84,000$ of direct labor cost in its Blending department and $$64,000$ 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.

Complete this question by entering your answers in the tabs below.

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.