Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,596,000 of factory overhead costs and use 57,000 machine hours. Erkens Company recorded the following events during the month of April a. Purchased 208,000 pounds of materials on account, the cost was $4.80 per pound. b. Issued 134,000 pounds of materials to production, of which 22,000 pounds were used as indirect materials. c. Incurred direct labor costs of $310,000 and $54,000 of indirect labor costs. d. Recorded depreciation on equipment for the month, $78,500. e. Recorded expired insurance costs for the manufacturing property, $4,900. Paid $9,900 cash for utilities and other miscellaneous items for the manufacturing plant. g. Completed Job H11 costing $8,900 and Job G28 costing $84.000 during the month and transferred them to the Finished goods inventory account. h. Shipped Job G28 to the customer during the month. The job was invoiced at 35% above cost Used 10.500 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year 2 Prepare journal entries to record the events that occurred during April 36. Compute the amount of overapplied or underapplied overhead. 3- Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. Complete this question by entering your answers in the tabs below. Red 1 Req 2 Reg 3A Red 36 Compute Elsens Company's predetermined overhead rate for the year 1 of 6 Next>>