Practice Problem 6: We-B-Busy, Inc. uses job costing and a predetermined overhead rate based on machine hours (MH). The firm estimated that it would use $240,000 of MOH and 7,500 MH this year. Data for February: Job 1010 Job 1011 Job 1012 $16,000 $26,000 $38,000 WIP, February 1 February production activity: Direct materials cost Direct labor cost Machine hours $4,000 $2,400 400 MH $4,800 $3,600 700 MH = $7,200 $4,000 900 MH Actual MOH costs Q1: Predetermined overhead rate (POHR) Q2: Total cost of Job 1010- Job 1011- Q3: Journal entry for the use of direct materials in production: Q3: Journal entry for the use of direct labor in production: Q3: Journal entry for the allocation of overhead to production: 1012- Q4: Journal entry for the completion of Job 1010 and Job 1011: Q5: Journal entries for the sale of Job 1010 for $50,000 cash: Total $80,000 $16,000 $10,000 2,000 MH $61,000 Q6: End-of-period adjustment for over-allocated or under-allocated overhead: