Factory Overhead Costs During August, Darling Company incurred factory overhead costs as follows: indirect materials, $1,000; indirect labor, $6,790; utilities cost, $2,910; and factory depreciation, $3,270 Journalize the entry to record the factory overhead incurred during August. For a compound transaction, if an amount box does not require an entry, leave it blank. Applying Factory Overhead Hatch Company estimates that total factory overhead costs will be $64,000 for the year. Direct labor hours are estimated to be 16,000 a. For Hatch Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. per direct labor hour b. During August, Hatch Company accumulated 860 hours of direct labor costs on Job 40 and 580 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August. c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate