E10-13 Recording direct labor and factory overhead Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a job order cost system. The time tickets from May jobs are summarized below. Job 5-100 Job 5-101 Job 5-102 Job 5-103 Factory supervision $6,400 3,900 4,800 2,900 1,750 Accounting Systems for Manufacturing Businesses Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $25 per hour. a. Determine the total factory labor costs transferred to Work in Process and Factory Overhead for May b. Determine the amount of factory overhead applied to production for May c. Illustrate the effects of the factory overhead applied in (b) on the accounts and financial statements