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Dexter Corporation, which uses a job costing system, had two jobs in process at the end of 20x0: job no. 59 (WIP balance = $90,000) and job no. 60 (WIP balance = $39,500). The following information is available:
The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $740,000 and 20,000 hours, respectively.
The company worked on three jobs during the first quarter of 20x1. Direct materials used, direct labor incurred, and machine hours consumed were:
Manufacturing overhead during the first quarter included charges for depreciation ($17,000), indirect labor ($50,000), indirect materials used ($4,000), and other factory costs ($108,700) paid in cash.
Required:
A. Determine the company's predetermined overhead application rate.
B. Prepare journal entries as of March 31, 20x1 to record the following:
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