Poobah Manufacturers Inc. has estimated total factory overhead costs of $95,000 and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, the work in process account will be debited and factory overhead will be credited for:

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The predetermined overhead rate can be calculated by dividing the total factory overhead costs by the estimated direct labor hours. In this case, the predetermined overhead rate is $9.50 per direct labor hour ($95,000 / 10,000). Therefore, job number 117 will be charged $21,850 for factory overhead (2,300 x $9.50). The work in process account will be debited for this amount and factory overhead will be credited.