Please show work for #5 and provide the applicable journal entry(s).
5. Apply overhead to jobs. See data for item 6 to obtain machine hours worked. (A direct laborer operates more than one machine simultaneously, so machine hours are not necessarily equal to labour hours incurred by Builders). Betty Inc. Production and Sales Data For the Month Ended January 31, 2021 Date Mach Stock Invoice Sold Finished Hours Number Number Units Job # Finished Units Sales Revenue 19-15 221 Dec. 11/20 n/a X-1 #923 200 $40,000 19-16 821 Dec. 15/20 n/a X-2 #924 800 36,000 19-17 50 Jan. 5/21 0 X-3 #925 20 6,800 19-18 1750 Jan. 12/21 3,000 X-4 #926 900 24,400 19-19 1000 Jan. 19/21 2,000 X-5 #927 950 75,000 X-6 #928 49 19-20 100 Jan. 30/21 19-21 Unfinished 150 800 8,500 5,950 $190,700* *All sales are on account. To cost jobs as they are worked on, a predetermined or budgeted overhead rate was computed for 2021 based on the following budgeted cost drivers: Building department 50,200 machine hours Finishing department $172,000 of direct labour These overhead rates will be used throughout the year by each department. All overhead will be applied to all jobs worked on during the year in proportion to the machine-hour and/or direct-labour cost devoted to each job. Betty Inc. rents its factory building. This budget was prepared after careful consideration of the sales outlook for the coming year. The forecasted budget consisted of the following items: Betty Inc. Factory Overhead Budget For The Year Ended December 31, 2021 Building Finishing Total Variable costs: Supplies $14,200 $5,400 $19,600 Indirect Labour 22,800 16,800 39,600 Utilities 30,000 8,000 38,000 Repairs 24,000 6,000 30,000 Misc. 19,000 11,000 30,000 110,000 47,200 157,200 Fixed costs: Insurance 7,000 4,620 $11,620 Amortization 90,000 14,400 104,400 Rent 24,000 13,000 37,000 Property taxes 4,980 1,200 6,180 Supervision 10,000 15,900 25,900 135,980 49,120 185, 100 Total Factory Overhead $245,980 $96,320 $342,300 FOH rate = budgeted FOH budgeted cost driver 5. Apply overhead to jobs. See data for item 6 to obtain machine hours worked. (A direct laborer operates more than one machine simultaneously, so machine hours are not necessarily equal to labour hours incurred by Builders). Betty Inc. Production and Sales Data For the Month Ended January 31, 2021 Date Mach Stock Invoice Sold Finished Hours Number Number Units Job # Finished Units Sales Revenue 19-15 221 Dec. 11/20 n/a X-1 #923 200 $40,000 19-16 821 Dec. 15/20 n/a X-2 #924 800 36,000 19-17 50 Jan. 5/21 0 X-3 #925 20 6,800 19-18 1750 Jan. 12/21 3,000 X-4 #926 900 24,400 19-19 1000 Jan. 19/21 2,000 X-5 #927 950 75,000 X-6 #928 49 19-20 100 Jan. 30/21 19-21 Unfinished 150 800 8,500 5,950 $190,700* *All sales are on account. To cost jobs as they are worked on, a predetermined or budgeted overhead rate was computed for 2021 based on the following budgeted cost drivers: Building department 50,200 machine hours Finishing department $172,000 of direct labour These overhead rates will be used throughout the year by each department. All overhead will be applied to all jobs worked on during the year in proportion to the machine-hour and/or direct-labour cost devoted to each job. Betty Inc. rents its factory building. This budget was prepared after careful consideration of the sales outlook for the coming year. The forecasted budget consisted of the following items: Betty Inc. Factory Overhead Budget For The Year Ended December 31, 2021 Building Finishing Total Variable costs: Supplies $14,200 $5,400 $19,600 Indirect Labour 22,800 16,800 39,600 Utilities 30,000 8,000 38,000 Repairs 24,000 6,000 30,000 Misc. 19,000 11,000 30,000 110,000 47,200 157,200 Fixed costs: Insurance 7,000 4,620 $11,620 Amortization 90,000 14,400 104,400 Rent 24,000 13,000 37,000 Property taxes 4,980 1,200 6,180 Supervision 10,000 15,900 25,900 135,980 49,120 185, 100 Total Factory Overhead $245,980 $96,320 $342,300 FOH rate = budgeted FOH budgeted cost driver
