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Cavy Company estimates that total factory overhead costs will be $795,874 for the year

Accounting

  1. Cavy Company estimates that total factory overhead costs will be $795,874 for the year. Direct labor hours are estimated to be 103,900. a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent. per direct labor hour b. Determine the amount of factory overhead applied to Job 456 if the amount of direct labor hours is 1,300 and to Job 888 if the amount of direct labor hours is 2,700. Job 456 Job 888 C. Journalize the entry to record the factory overhead applied if Jobs 456 and 888 are the only jobs for the period. If an amount box does not require an entry, leave it blank

  2. 3 Exercise 36, Chapter 2 wit. Home inset Design Layout Raferen Mailing RaviowView Duvel ca.bbcollab.com is sharing your screen Times New Roman - 12 - EE. Α BI U • ?ào X, x A = T . Paste Styles Editing Create and Share Request A.A. -A- AA 9.11. 4. Adobe PDF Signatures Clipboard Font Paragraph Styles Adobe Acrobat Exercise 36 Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 1000 250 1.250 Machine-hours 4500 2.500 7.000 Direct labowhours 3.000 2000 5.000 Direct manas costs $ 10.000 $ 3.750 5 13.750 Direct labor costs 64.500 35 500 100.000 Manufacturing the costs 175 000 ory Required: Compute the predetermined overhead mateng that Tiger Furnishings tses machine hours to allocate overhead costs ary bera Solution Una E sema hood A ra Saif amma ? ?? Tyne here to search 31

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  1. Answer-

    (a) The predetermined factory overhead rate

    Solution-

    Predetermined factory overhead rate = $795,874 / 103,900

    Predetermined factory overhead rate = $7.66


    (b) the amount of factory overhead applied to Job 456 if the amount of direct labor hours is 1,300 and Job 888 if the amount of direct labor hours is 2,700

    Solution-

    For Job 456: 1300 hours*$7.66= $9,958

    For Job 888: 2700 hours*$7.66= $20,682

    (c) prepare the journal entry to apply factory overhead in April according to the predetermined overhead rate.

    Solution-

    S.No

    Account title and Explanation

    Amount (Debit) Amount (Credit)
    1. Work in Process $30,640  
      Factory Overhead   $30,640

    $9,958+ $20,682 = $30,640

  2. please find attached.

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