1) During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5,940 on account, factory labor $6,420 of which $5,850 relates to factory wages payable and $570 relates to payroll taxes payable, and utilities payable $2,920. During January, time tickets show that the factory labor of $6,420 was used as follows: Job 1 $2,352, Job 2 $1,720, Job 3 $1,680, and general factory use $668. Prepare a summary journal entry to record factory labor used.

2) Marquis Company estimates that annual manufacturing overhead costs will be $857,000. Estimated annual operating activity bases are direct labor cost $496,000, direct labor hours 46,400, and machine hours 107,100.

Compute the predetermined overhead rate for each activity base.

3) In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $22,170 and Job 11 $33,960. On March 31, Job 10 is sold to the customer for $49,310 in cash.

Journalize the entries for the completion of the two jobs and the sale of Job 10. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

4) The gross earnings of the factory workers for Vargas Company during the month of January are $70,300. The employer's payroll taxes for the factory payroll are $7,900. The fringe benefits to be paid by the employer on this payroll are $5,400. Of the total accumulated cost of factory labor, 80% is related to direct labor and 20% is attributable to indirect labor.