During the current month, a company that uses job order costing incurred a monthly factory payroll of $226,000. Of this amount, $44,000 is classified as indirect labor and the remainder as direct. Prepare journal entries to record these transactions. A company estimates the following manufacturing costs for the next period: direct labor, $524,000; direct materials, $191,000; anc factory overhead, $145,000. Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its overhead cost as a percent of direct materials. Complete this question by entering your answers in the tabs below. Compute its overhead cost as a percent of direct materials. At the beginning of the year, a company predicts total overhead costs of $614,900. The company applies overhead using machine hours and estimates it will use 1,430 machine hours during the year. What amount of overhead should be applied to Job 65A if that job uses 16 machine hours during January