Reference no: EM132646264

Questions -

Q1. Warren 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 direct labor hours of 20,000. During the month of February 2019, Job 2-1 incurred direct labor of 450 hours. Use this information to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job 2-1 for the month. If no entry is required then write "No Entry Required."

Q2. On March 31, 2019, Dorchester Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary $5,500

Factory Utilities 2,800

Machinery Deprecation 9,000

Machinery Repairs 1,800

Factory Rent 2,000

The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $22,000 would be incurred, and 2,000 direct labor hours would be worked. During March, 650 hours were actually worked on Job Order 3-1 and 1,200 hours were actually worked on Job Order 3-2. Use this information to prepare the March 31 General Journal entries, without explanations, for the: (round any final dollar answers to the nearest whole dollar):

1. to record the factory overhead costs

2. the allocation of factory overhead to Job Order 3-1

3. the allocation of factory overhead to Job Order 3-2

4. the adjusting entry to dispose of any over or under application of factory overhead