Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,000. For Bergan Company,
(A) Determine the predetermined factory overhead rate using direct labor hours as the activity base,
(B) Determine the amount of factory overhead applied to Jobs 200 and 305 in May using the data on direct labor hours from BE 2-2, and (C) prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
Bergan Company estimates that total factory overhead costs will be