Abbott Lamp Corporation manufactures BOTH Mountain Dew Lamps AND Coca-Cola Lamps, starts 1/1/20. On 1/1/20, Erin Rogers ESTIMATES the following MOH costs: 

Utilities for manufacturing building $4,000 

Grease for machines $1,200 

Rent on manufacturing building $3,600 

Depreciation on manufacturing machine $1,200 

Erin Rogers also estimates a total of 2,000 direct labor hours for the year and ALC applies MOH costs using DLH (or direct labor hours). 

Compute the Predetermined Overhead Rate. On 1/1/20, 

ALC obtains a lamp-making machine for $6000 – on the account. It has a 0 salvage value and a useful life of 5 years. Please give the journal entry to describe this transaction.

Answer rating: 100% (QA)

Lets compute for the predetermined overhead rate using the given data Predeter... View the full answer