E 16-4Applying factory overhead.

Bergan Co. estimates that the total overhead costs will be $650,000 for the year. Direct labor hours are estimated to be 81,250.

For Bergan Co.,

a) Determine the predetermined factory overhead rate using direct labor hours as the activity base,

b) Determine the amount of factory overhead applied to jobs 200 and 305 in May using the data on direct labor hours from BE 16-2,

c) And prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate.