Exerclse $16-21($Algo$)$ Computing and applying predetermined overhead rate LO P$3$

Blue Sky Soda estimates total factory overhead costs of $$3,861,000$ and total direct labor costs of $$2,970,000$ for its first year of

operations. During January, the company used $$97,000$ of direct labor cost in its Blending department and $$77,000$ of direct labor cost

in its Bottling department.

Compute the predetermined overhead rate as a percentage of direct labor cost.

Prepare the journal entry to apply factory overhead to the Blending and Bottling departments.

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Compute the predetermined overhead rate as a percentage of direct labor cost.