Blue Sky Soda estimates total factory overhead costs of $3,770,000 and total direct labor costs of $2,900,000 for its first year of operations. During January, the company used $90,000 of direct labor cost in its Blending department and $70,000 of direct labor cost in its Bottling department.1. Compute the predetermined overhead rate as a percentage of direct labor cost.2. Prepare the journal entry to apply factory overhead to the Blending and Bottling departments.

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