Factory Overhead

Keenan Company estimates that total factory overhead costs will be $140,000 for the year. Direct labor hours are estimated to be 20,000.

a. For Keenan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base.

$____ per direct labor hour

b. During May, Keenan Company accumulated 600 hours of direct labor costs on Job 200 and 570 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May.

$____

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

Account TitleDebitCredit