Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If Job 117 incurs 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

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The predetermined overhead rate is calculated by dividing the expected total factory overhead costs by the expected direct labor hours: $95,000/9,500 = $10 per direct labor hour. Therefore, if Job 117 incurs 2,300 direct labor hours, the overhead applied to that job would be: $10 per direct labor hour x 2,300 direct labor hours = $23,000. This would result in a debit to Work in Process (for the direct labor cost) and a credit to Factory Overhead (for the applied overhead cost).