MarineCo, Inc. manufactures outboard motors and an assortment of other marine equipment, The Company uses a job-order costing system. Normal costing is used, and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,464,000, and management estimates the firm’s practical capacity at 73,200 machine hours.

Required:
1. Calculate MarineCo’s predetermined overhead rate for the year.
2. Prepare journal entries to record the following events, which occurred during April.
a. The firm purchased marine propellers from Peninsula Marine Corporation for $7,850 on account.
b. A requisition was filed by the Gauge Department supervisor for 300 pounds of clear plastic. T1ie material cost $60 per pound when it was purchased.
c. The Motor Testing Department supervisor requisitioned 300 feet of electrical wire, which is considered an indirect material. The wire cost $.l0 per foot when it was purchased.
d. An electric utility bill of $800 was paid in cash.
e. Direct-labor costs incurred in April were $75,000.
f. April’s insurance cost was $1,800 for insurance on the cars driven by sales personnel. The policy had been prepaid in March.
g. Metal tubing costing $3,000 was purchased on account.
h. A cash payment of $1,700 was made on outstanding accounts payable.
i. Indirect-labor costs of $21,000 were incurred during April.
j. Depreciation on equipment for April amounted to $7,000.
k. Job number G22, consisting of 50 tachometers, was finished during April. The total cost of the job was $1,100.
l. During April, 7,000 machine hours were used.
m. Sales on account for April amounted to $176,000. The cost of goods sold in April was $139,000.