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Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct labor hours are estimated to be 513,000.Required:A.For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent.B.During May, Bergan Company accumulated 19,000 hours of direct labor costs on Job 200 and 23,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May.C.Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.    A. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent.  per direct labor hour   B. During May, Bergan Company accumulated 19,000 hours of direct labor costs on Job 200 and 23,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May.   . Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles. JOURNALACCOUNTING EQUATION  DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1        2

Question
Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct labor hours are estimated to be 513,000.
Required:
A. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent.
B. During May, Bergan Company accumulated 19,000 hours of direct labor costs on Job 200 and 23,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May.
C.

Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.

 

 

 

 

A. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent.
 
 per direct labor hour
 
 
 
B. During May, Bergan Company accumulated 19,000 hours of direct labor costs on Job 200 and 23,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May.
 
 
 
. Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.
 
JOURNAL
ACCOUNTING EQUATION
 
  DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1
 
 
 
 
 
 
 
 
2
 
 
 
 
 
 
 
 
 
 
 
 
check_circleAnswer
Step 1

Answers for the given 3 requirements are as ...

A. Calculate predetermined Overheadrate using direct labour hour as base:
Estimated Total Factory Overhead
Predetermined Overhead rate
Estimated Total Direct Labour Hours
$1,539,000
513,000 hours
=$3
B. Calculation offactory overheadapplied to Jobs 200 and 305 in May
Amount of
factory overhead
applied
$57,000
$69.000
Particulars
Job 200 (S3x19,000 hours)
Job 305 ($3x23,000 hours)
Total overhead applied
$126.000
C. Prepare the joumal entry on May 30 to apply factory overhead to both jobs in May
according to the predetermined overhead rate:
Asset Liability | Equity
Description
Debit
Credit
Date
Post
ref.
May30 Work in process
$126,000
Factory overhead payable
$126,000
Note: As the chart of accounts is not provided in the posted question for exact
wording of account titles, hence we are
taking above two account titles
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A. Calculate predetermined Overheadrate using direct labour hour as base: Estimated Total Factory Overhead Predetermined Overhead rate Estimated Total Direct Labour Hours $1,539,000 513,000 hours =$3 B. Calculation offactory overheadapplied to Jobs 200 and 305 in May Amount of factory overhead applied $57,000 $69.000 Particulars Job 200 (S3x19,000 hours) Job 305 ($3x23,000 hours) Total overhead applied $126.000 C. Prepare the joumal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate: Asset Liability | Equity Description Debit Credit Date Post ref. May30 Work in process $126,000 Factory overhead payable $126,000 Note: As the chart of accounts is not provided in the posted question for exact wording of account titles, hence we are taking above two account titles

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