Cavy Company estimates that total factory overhead costs will be $569,642 for the year Direct labor hours are estimated to be 105,100 Required a Compute the predetermined factory overhead rate Round your answer to the nearest cent b Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,400 and to Job 999 if the amount of direct labor hours is 2,800 c Prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for spaces or journal explanations Every line on a journal page is used for debit or credit entries Do not add explanations or skip a line between journal entries CNOW journals will automatically indent a credit entry when a credit amount is entered CHART OF ACCOUNTS Cavy Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 131 Materials 133 Work in Process 135 Factory Overhead 137 Finished Goods 141 Supplies 142 Prepaid Expenses 181 Land 190 Factory Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Insurance Expense 532 Utilities Expense 533 Office Supplies Expense 560 Depreciation Expense 590 Miscellaneous Expense 710 Interest Expense a Compute the predetermined factory overhead rate Round your answer to the nearest cent Predetermined factory overhead rate per direct labor hour b Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,400 and to Job 999 if the amount of direct labor hours is 2,800 Job 567 Job 999 c Prepare the journal entry to apply factory overhead for April 30 according to the predetermined overhead rate Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for spaces or journal explanations Every line on a journal page is used for debit or credit entries Do not add explanations or skip a line between journal entries CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 1 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2

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Cavy Company estimates that total factory overhead costs will be $569,642 for the year. Direct labor hours are estimated to be 105,100. Required: a. Compute

Cavy Company estimates that total factory overhead costs will be $569,642 for the year. Direct labor hours are estimated to be 105,100.

Required:

a.	Compute the predetermined factory overhead rate. Round your answer to the nearest cent.
b.	Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,400 and to Job 999 if the amount of direct labor hours is 2,800.
c.	Prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTS

Cavy Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
131	Materials
133	Work in Process
135	Factory Overhead
137	Finished Goods
141	Supplies
142	Prepaid Expenses
181	Land
190	Factory Equipment
191	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Insurance Expense
532	Utilities Expense
533	Office Supplies Expense
560	Depreciation Expense
590	Miscellaneous Expense
710	Interest Expense

a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent.

Predetermined factory overhead rate

per direct labor hour

b. Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,400 and to Job 999 if the amount of direct labor hours is 2,800.

Job 567:
Job 999:

c. Prepare the journal entry to apply factory overhead for April 30 according to the predetermined overhead rate. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 1

JOURNAL