19-2B data

Journal Enteries
Date	Particulars		Debit in $	Credit in $
	Work in Progress		186200
	Wages Payable			186200
	Job 40 (3500x25)		87500
	Job 42 (4200x23.50)		98700
	Total		186200

Example Exercise 19-4 Applying Factory Overhead Obj.2 Hatch Company estimates that total factory overhead costs will be $100,000 for the year. Direct labor hours are estimated to be 25,000. For Hatch 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 101 and 102 in March using the data on direct labor hours from Example Exercise 19-2, and (c) prepare the journal entry to apply factory overhead to both jobs in March according to the predetermined overhead rate. Follow My Example 19-4 a. $4.00 per direct labor hour = $100,000 + 25,000 direct labor hours b. Job 101 $3,200 = 800 hours x $4.00 per hour Job 102 2,400 = 600 hours x $4.00 per hour Total $5,600 c. Work in Process 5,600 Factory Overhead 5,600 -4 p. 935 PE 19-4B Applying factory overhead OBJ. 2 Rothchild Company estimates that total factory overhead costs will be $810,000 for the year. Direct labor hours are estimated to be 90,000. For Rothchild 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 40 and 42 in August using the data on direct labor hours from Practice Exercise 19-2B; and (c) prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate