Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000.
a. Compute the predetermined factory overhead rate.
b. Determine the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and to Job 777 if the amount of direct labor hours is 800.
c. Journalize the entry to record the factory overhead applied if Jobs 345 and 777 are the only jobs for the period.

Question

Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000.​
a. Compute the predetermined factory overhead rate.
b. Determine the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and to Job 777 if the amount of direct labor hours is 800.
c. Journalize the entry to record the factory overhead applied if Jobs 345 and 777 are the only jobs for the period.

Quizplus · Accepted Answer

The Answer of Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000.​
a. Compute the predetermined factory overhead rate.
b. Determine the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and to Job 777 if the amount of direct labor hours is 800.
c. Journalize the entry to record the factory overhead applied if Jobs 345 and 777 are the only jobs for the period.

Cavy Company Estimates That Total Factory Overhead Costs Will Be