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Cavy Company estimates that total factory overhead costs will be $791,820 for the year. The company has decided that the basis for applying factory
Cavy Company estimates that total factory overhead costs will be $791,820 for the year. The company has decided that the basis for applying factory overhead should be direct labor hours, which are estimated to be 95,400 hours. a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent. 8.30 per direct labor hour b. Determine the amount of factory overhead applied to Job 456 if the amount of direct labor hours is 1,000 and to Job 888 if the amount of direct labor hours is 3,200. Job 456 $ 8,300 Job 888 $ 26,560 c. Journalize the entry for the factory overhead applied if Jobs 456 and 888 are the only jobs for the period. If an amount box does not require an entry, leave it blank. Work in Process Factory Overhead
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