At the beginning of the year, a manufacturing company estimates it will incur \(\$ 240,000\) of overhead costs. The company applies overhead using machine hours and estimates it will use 1,600 machine hours for the year. During June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2.
1. Compute the predetermined overhead rate.
2. Determine overhead applied in June to (a) Job 1 and (b) Job 2.
3. Prepare the journal entry to record overhead applied for June.