Show Me How Calculator Factory Overhead Rates, Entries, and Account Balance Sund
ID: 2547446 • Letter: S
Question
Show Me How Calculator Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal $563,920 year beginning March 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for March Actual direct labor hours for March Actual machine hours for March $780,000 10,000 14,840 45,180 $67,390 900 1,160 a. Determine the factory overhead rate for Factory 1 38 per machine hour b. Determine the factory overhead rate for Factory 2. 78 per direct labor hour Feedback Check My Work a-b. Factory 1 overhead is applied based on machine hours. Factory 2 overhead is applied based on direct labor hours c. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 Work in Process 4.080 44.080 Overhead Factory 2 Work in Process Y Factory Overhead 0,200 70,200 Feedback YCheck My Work Check My Work All work saved 19Explanation / Answer
Answer Part d Calculation of factory overhead balances for each factory as of March 31 Factory 1 Factory 2 Beginning balance as of March 1 (debit) Add: Cost incurred during March 45180 67390 Less : Factory Overhead applied to WIP 44080 70200 Ending balance as of March 31 = Debit / (Credit) 1100 -2810 Factory 1 = $1100 Debit = Underapplied Factory 2 = $2810 Credit = Overapplied