Applying Factory Overhead
Darling Company estimates that total factory overhead costs willbe $493,000 for the year. Direct labor hours are estimated to be29,000.
a. For Darling Company, determine thepredetermined factory overhead rate using direct labor hours as theactivity base.
$ per direct labor hour
b. During May, Darling Company accumulated 640hours of direct labor costs on Job 200 and 890 hours on Job 305.Determine the amount of factory overhead applied to Jobs 200 and305 in May.
$
c. Prepare the journal entry to apply factoryoverhead to both jobs in May according to the predeterminedoverhead rate.
