Job 301 $6,700
Job 302 5,100
Job 303 5,000
Job 304 5,800
Factory supervision 3,900
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $40 per hour.
a. Journalize the entry to record the factory labor costs.
b. Journalize the entry to apply factory overhead to production for May.
Answer:
a.
Work in Process 22,600
Factory Overhead 3,900
Wages Payable 26,500
b.
Work in Process 11,300
Factory Overhead 11,300
$22,600 ÷ $40 per hour = 565 hours
565 hours × $20 per hour = $11,300