Cards by Hallmark allocate factory overhead based on hours used by a piece of equipment. At the beginning of the period, the company estimates factory overhead to be $25,000 and expects the equipment to be used for 4,000 hours. During the period Job, 22 requires 1,900 hours of use of the equipment. Job 23 requires 1,700 hours, and Job 24 requires 100 hours. As of March 31, actual indirect costs include: $4,000 for indirect materials, $9,100 for indirect labor, $6,000 for utilities, and $5,200 for equipment depreciation. Required: a. Prepare the journal entry to record the costs considered factory overhead. b. Calculate the predetermined factory overhead rate. c. Prepare the journal entry required to apply the factory overhead to the jobs at the end of the month.
Cards by Hallmark allocate factory
Required:
a. Prepare the
b. Calculate the predetermined factory overhead rate.
c. Prepare the journal entry required to apply the factory overhead to the jobs at the end of the month.
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