Tith 12. Cards by Shannon allocates factory overhead based upon hours used by a piece of equipment. At the beginning of the period, the company estimates factory overhead to Job Order Costing 3 be $25,000 and expects the equipment to be used for 4,000 hours. During the period Job 22 requires 1,900 hours of use of the equipment, Job 23 requires 1,700 hours, and Job 24 requires 100 hours. As of March 31, actual indirect costs include: $4,000 for indirect materials, $9,100 for indirect labor, $6,000 for utilities, and $5,200 for equipment depreciation. a. Prepare the journal entry to record the costs considered factory overhead. Event 1 Jornal Entry Particulars Debit Factory overhead Dr $24,300 Raw materials inventory Factory Wages Payable Utilities Payable Accumulated depreciation Equipment (To record factory overhead) Credit $4,000 $9,100 $6,000 $5,200 b. Calculate the predetermined factory overhead rate. I' Answer - Estimated overhead/ Estimated equipment hours = $25,000/4000=$6.25/h c. Prepare the journal entry required to apply the factory overhead to the jobs at the end of the month