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A manufacturer estimates total factory overhead costs of $4,740,000 and total direct labor costs of...

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Accounting

A manufacturer estimates total factory overhead costs of $4,740,000 and total direct labor costs of $2,370,000 for its first year of operations. During January, the company used $117,000 of direct labor cost in its Blending department and $92,000 of direct labor cost in its Bottling department. The company computes its predetermined overhead rate as a percentage of direct labor cost. Which of the following is the correct journal entry to apply factory overhead to the Blending and Bottling departments.

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