Problem $3-45$ Job$-$Order Costing; Journal Entries $($ LO $3-2,(3-4,(3-5)$

a$.$ The company applies manufacturing overhead on the basis of machine hours $($based on practical capacity$).$ Budgeted overhead and machine activity for the year were anticipated to be $$840,000$ and $16,000$ hours, respectively.

b$.$ The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were

page $125$ as follows:

$\backslash$table$[[$Job No$.,$Direct Material,Direct Labor,Machine Hours$],[64,$$$21,000,$$$35,000,1,200],[65,-,22\mathrm{.}000,700],[66,44,000,65,000,2,000],[67,15,000,8,800,500]]$

c$.$ Manufacturing overhead during the first quarter included charges for depreciation $($ $$34,000),$ indirect labor $($ $$60,000),$ indirect materials used $($ $$5,000),$ and other factory costs $($ $$139,500).$

d$.$ Stellar Sound completed job no$.64$ and job no$.65,$ Job no$.65$ was sold on account, producing a profit of $$34,700$ for the firm.

peap $126$

Required:

Determine the company's predetermined overhead application rate.

Prepare journal entries as of March $31$ to record the following. $($Note: Use summary entries where appropriate by combining individual job data.$)$

a$.$ The issuance of direct material to production and the direct labor incurred.

b$.$ The manufacturing overhead incurred during the quarter.

c$.$ The application of manufacturing overhead to production.

d The enomelation of inley no $64$ and no $65$