to apply factory overhead to both jobs in May according to the predetermined overhead rate. PE 19-4B Applying factory overhead Obj. 2 Example Exercise 19-4 Show Me How Rothchild Company estimates that total factory overhead costs will be $810,000 for the year. Direct labor hours are estimated to be 90,000. For Rothchild Company, (a) determine the predetermined factory overhead rate using direct labor hours as the activity base, (b) determine the amount of factory overhead applied to jobs 40 and 42 in August using the data on direct labor hours from Practice Exercise 19-2B, and prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate. PE 19-5A Job costs PE 19-2B Direct labor costs Obj. 2 Example Exercise 19-2 During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour for Job 40 and $23.50 per direct labor hour for Job 42. Journalize the entry to record the flow of labor costs into production during August Show Me How PE 19-3A Factory overhead costs Obi: 2