Problem: Johnson Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Johnson make to assign the Factory Payroll?
A) Payroll Expense 28,900
Cash 28,900
B) Payroll Expense 24,600
Factory Overhead 4,300
Factory Payroll 28,900
C) Goods in Process Inventory 24,600
Factory Overhead 4,300
Factory Payroll 28,900
D) Goods in Process Inventory 24,600
Factory Overhead 4,300
Accrued Wages Payable 28,900
E) Goods in Process Inventory 28,900
Factory Payroll 28,900
TVD Company uses a job order cost accounting system and last period incurred $80,000 of overhead and $100,000 of direct labor. TVD estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If BVD bases applied overhead on direct labor cost, their overhead application rate for the next period should be
A. 75%
B. 80%
C. 107%
D. 125%
E. 133%