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Almerinda Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000.
Required:
A. For Almerinda Company, determine the predetermined factory overhead rate using direct labor hours as the activity base.
B. During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. Determine the amount of factory overhead applied to Jobs 50 and 51 in April.
C. Prepare the journal entry on Apr. 30 to apply factory overhead to both jobs in April according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.
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