Almerinda Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000. For Almerinda 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 50 and 51 in April using the data on direct labor hours from Practice Exercise 19-2A, and
(c) Prepare the journal entry to apply factory overhead to both jobs in April according to the predetermined overhead rate.
Exercise 19-2A
During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. The total direct labor was incurred at a rate of $20.00 per direct labor hour for Job 50 and $22.00 per direct labor hour for Job 51. Journalize the entry to record the flow of labor costs into production during April.