Iolaus Company Provides the Following Data for the Current Year

question 121

Essay

Iolaus Company provides the following data for the current year:
Estimated Factory Overhead …………………7,800
Factory Overhead Incurred………………… $11,400
Factory Overhead Applied………………… ?
Estimated Direct Labor Cost …………………12,000
Direct Labor Cost Incurred………………… 11,800
Required:
a.Calculate the predetermined overhead allocation rate based on direct labor.
b.Determine the amount of overhead applied to production.
c.Prepare the journal entry to apply factory overhead to goods in process.