BonitaWings, Inc. manufactures airplanes for use in stunt shows. Bonita's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Bonita uses a job order costing system to accumulate product costs. At the end of 2020, Bonita's accountants developed the following expectations for 2021 based on the marketing department's sales forecast: Budgeted overhead cost Estimated machine hours Estimated direct labor hours Estimated direct materials cost $1,050,000 50,000 9,000 $1,500,000 Bonita's inventory count, completed on December 31, 2020, revealed the following ending inventory balances: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory $251,000 $625,000 $2,080,000 The company's 2021 payroll data revealed the following actual payroll costs for the year: Wage Rate Number Employed Annual Salary per Employee $224.000 Total Hours Worked per Employee per Hour Job Title President and CEO Number Employed 1 1 Wage Rate per Hour Total Hours Worked per Employee Annual Salary per Employee $224,000 $177,000 $40,300 $31,400 1 Job Title President and CEO Vice president and CFO Factory manager Assistant factory manager Machine operator Security guard, factory Forklift operator Corporate secretary Janitor, factory 1 5 $15 2,250 2 $20,400 2 $8 2,000 1 $35,700 2 $6 2.150 The following information was taken from Bonita's Schedule of Plant Assets. All assets are depreciated using the straight-lin method. Plant Asset Factory building Administrative office Factory equipment Purchase Price Salvage Value Useful Life $4,000,000 $150,000 20 Years $650.000 $125,000 30 Years $2,000,000 $20,000 12 Years Other miscellaneous costs for 2021 all paid in cash included: Cost Factory insurance (fully expired) Administrative office utilities Factory utilities Amount $12.300 $5,400 $300 Other miscellaneous costs for 2021 all paid in cash included: Cost Factory insurance (fully expired) Administrative office utilities Factory utilities Office supplies (fully consumed) Amount $12,300 $5,400 $30,100 $4,100 Additional information about Bonita's operations in 2021 includes the following: Raw materials purchases for the year amounted to $1,945,000. All materials were purchased on account. The company used $1,860,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials. Bonita applied overhead to Work in Process Inventory based on direct materials cost. Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory. Bonita uses a markup of 150% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account. (Note: This transaction requires two journal entries.) . (a) Your answer is correct. What was Bonita's predetermined overhead rate in 2021? What was Bonita's predetermined overhead rate in 2021? 20 Predetermined overhead rate % of direct materials cost eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Prepare the journal entries to record Bonita's costs for 2021. (Use Salaries Payable and Wages Payable accounts for payroll costs) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Post entries in order presented in the problem. Round answers to decimal places, eg,5,275) No. Account Titles and Explanation Debit Credit 1 (To record salaries for president, vice president, and corpoarte secretary) 2 (To record saared factory worker costs) No. Account Titles and Explanation Debit Credit 1 (To record salaries for president, vice president, and corpoarte secretary) 2 (To record salaried factory worker costs) 3. (To record hourly factory worker costs) 4. (To record depreciation on administrative office equipment) 5 (To record depreciation on factory building and equipment) "T LUTY equipment) 6. (To record administrative office utilities and office supplies expense) 7. (To record factory insurance and factory utilities) (To record raw materials purchases) 9. (To record direct materials and indirect materials used in production) 10. (To apply overhead to work in process production) 10 (To apply overhead to work in process) 11 (To record transfer of completed airplanes) 12 (To record sale of airplanes to customers) 13. (To record cost of airplanes sold)