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erizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most

erizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $180,480. Estimated direct labor cost was $468,480 for 19,200 hours.
Actual costs for the most recent month are summarized here:
Item Description Total Cost
Direct labor (1,500 hours) $ 46,849
Indirect costs
Indirect labor 2,520
Indirect materials 3,470
Factory rent 3,240
Factory supervision 4,850
Factory depreciation 5,740
Factory janitorial work 1,240
Factory insurance 1,820
General and administrative salaries 4,200
Selling expenses 5,370
Required:
1.,2. & 3-a. Prepare the journal entries for overhead.
3-b. Does the last transaction increase or decrease Cost of Goods Sold?

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