RECOMMENDED!!For 2010, Omaha Mechanical has a monthly overhead cost formula of $42,900

  

For 2010, Omaha Mechanical has a monthly overhead cost
formula of $42,900 + $6 per direct labor hour. The firm’s expected annual
capacity is 78,000 direct labor hours, to be incurred evenly each month. Making
one unit of the company’s product requires 1.5 direct labor hours.
a. Determine the total overhead to be applied per unit of
product in 2010.
b. Preparejournal entries to record the application of
overhead to Work in ProcessInventory and the incurrence of $128,550 of actual
overhead in January 2010, when 6,390 direct labor hours were worked.
c. Given the actual direct labor hours in part (b), how many
units would you have expected to be produced in January?

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