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Direct Labor Costs During August, Hatch Company accumulated 580 hours of direct labor costs on Job 40 and 810 hours on Job 42. The total

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Direct Labor Costs During August, Hatch Company accumulated 580 hours of direct labor costs on Job 40 and 810 hours on Job 42. The total direct labor was incurred at a rate of $11 per direct labor hour for Job 40 and $13 per direct labor hour for Job 42. Journalize the entry to record the flow of labor costs into production during August. Issuance of Materials On August 4, Jernigan Company purchased on account 420 units of raw materials at $20 per unit. During August, raw materials were requisitioned for production as follows: 164 units for Job 40 at $16 per unit and 143 units for Job 42 at $20 per unit. ournalize the entry on August 4 to record the purchase Aug. 4 Journalize the entry on August 31 to record the requisition from the materials storeroom Aug 31 Factory Overhead Costs During August, Darling Company incurred factory overhead costs as follows: indirect materials, $1,000; indirect labor, $6,790; utilities cost, $2,910; and factory depreciation, $3,270 Journalize the entry to record the factory overhead incurred during August For a compound transaction, if an amount box does not require an entry, leave it blank. Applying Factory Overhead Hatch Company estimates that total factory overhead costs will be $64,000 for the year. Direct labor hours are estimated to be 16,000. a. For Hatch Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places per direct labor hour b. During August, Hatch Company accumulated 860 hours of direct labor costs on Job 40 and 580 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August. c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate

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