Reference no: EM132653929

Questions -

Question 1: Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $280,000 and estimated direct labor hours of 25,000. During the month of February 2019, Job 2-1 incurred actual direct labor of 450 hours. Use this information to prepare the General Journal entry (without explanation) to apply factory overhead for the month of February to Job 2-1.

Question 2: During March 2019, Virginia Bay Corporation recorded $275,000 of actual costs related to factory overhead. Virginia Bay's overhead application rate is based on estimated direct labor hours. The preset formula for overhead application estimated that $262,000 overhead costs would be incurred, and estimated 8,000 direct labor hours would be worked. During March, 11,000 hours were actually worked. Use this information to determine the overhead application rate.