Vermont Custom Woodworking Co manufactures custom decorative book shelves (among other products that are sold in expensive retail stores. The company uses a job-order cost system, for the book shelves and manufacturing overhead is applied on the basis of direct labor hours. Estimated manufacturing overhead for the year is $249,600. The company has hired 10 wood craftsmen who make the book shelves, and other products. Each of the craftsmen is expected to work 1,920 hours during the year on the book shelves, which represents each employee's practical capacity. The following events ocurred during October $34,800 $480 $900 S 110 $7,000 $500 . Purchased 2,900 board feet of rosewood at $12 per board foot b. The production supervisor requisitioned the following from the storeroom: 96 brass hinges each costing $5.00 75 board feet of rosewood c. The storeroom received a requisition for 11 gallons of glue costing $10 per gallon to be delivered to the production area d. Depreciation on the building for the month was $7,000. e. The October utility bill paid in cash was $500 f. Review of the time cards showed the following: Job J16: 24 Premium book shelves produced - using 950 hours of direct labor Job 181: 40 standard book shelves produced using 750 hours of direct labor The wood craftsmen (direct labor personnel) each ear $19 per hour. Overhead costs were applied to production 3. The property tax bill for October in the amount of 900 was received, but won't be paid until November h. The maintenance workers and materials handlers who work at the company camed $2,400 in October i. Job JI6 (which was started in August), was completed in October at a total cost of $15,000. j. The company sold 18 of the Job J16 Premium book shelves at $800 each. S32,300 $22,100 $900 $2,400 $15,000 $11.250 cost S14,400 revenue Instructions: (1) Calcuate the company's predetermined overhead rate for the year (2) Prepare the journal entries to record the transactions above