For the current year, Omaha Mechanical has a monthly overhead cost formula of $60,060 + $6...

For the current year, Omaha Mechanical has a monthly overhead cost formula of $60,060 + $6 per direct labor hour. The firm’s current year expected annual capacity is 109,200 direct labor hours, to be incurred evenly each month. Making one unit of the company’s product requires 1.5 direct labor hours.

b. Prepare journal entries to record (1) the incurrence of $179,970 of actual overhead in January, when 8,946 direct labor hours were worked and (2) the application of overhead to Work in Process Inventory.
Note: Round amounts to the nearest whole dollar.

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ekkarill92 answered 2 years ago

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