Gross Company estimates that total factory overhead costs will be $2,200,000 for the year. Direct labor hours are estimated to be 400,000. a. For Gross Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. b. During February, Gross Company accumulated 15,000 hours of direct labor costs on Job 60 and 18,000 hours on Job 61. Determine the amount of factory overhead applied to Jobs 60 and 61 in February.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter2: Job Order Costing
Section: Chapter Questions
Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...
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General Accounting

Gross Company estimates that total factory overhead
costs will be $2,200,000 for the year. Direct labor hours
are estimated to be 400,000.
a. For Gross Company, determine the predetermined
factory overhead rate using direct labor hours as the
activity base.
b. During February, Gross Company accumulated
15,000 hours of direct labor costs on Job 60 and
18,000 hours on Job 61. Determine the amount of
factory overhead applied to Jobs 60 and 61 in
February.
Transcribed Image Text:Gross Company estimates that total factory overhead costs will be $2,200,000 for the year. Direct labor hours are estimated to be 400,000. a. For Gross Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. b. During February, Gross Company accumulated 15,000 hours of direct labor costs on Job 60 and 18,000 hours on Job 61. Determine the amount of factory overhead applied to Jobs 60 and 61 in February.
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