As of January 1 , 20Y5 , Deacon Corporation expected to incur $ 10,000 of factory overhead . This would be applied per hour of machine usage , which...
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As of January 1, 20Y5, Deacon Corporation expected to incur $10,000 of factory overhead. This would be applied per hour of machine usage, which is expected to be

4,000 hours for the month. The company incurs the following expenses during the month: $1,000 for indirect materials, $4,100 for indirect labor, $5,000 for factory utilities, and $1,750 for factory depreciation. Job 70 required 1,900 machine hours andJob 71 required 2,950 machine hours.a.Calculate the predetermined factory overhead rate. 10000/4000 = $2.50 per hourb.Prepare the journal entry required to record the costs incurred.Jan. 31 Factory Overhead 11,850 Materials 1,000 Wages Payable 4,100 Utilities Payable 5,000 Accumulated Depreciation 1,750c.Prepare the journal entry to record the allocation of the factory overhead.Jan. 31 Work in Process 12,125 Factory Overhead 12,125
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