Factory overhead rates, entries, and account balance OBJ.2 Montenegro Metal Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2 Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 2 Estimated factory overhead cost for fiscal 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 Factory 1 $12,000,000 320,000 $1,012,600 27,500 $8,360,000 440,000 $695,000 36.250 a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the entries to apply factory overhead to production in each factory for March. d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent over- or underapplied fac- tory overhead.

Factory overhead rates, entries, and account balance OBJ.2 Montenegro Metal Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2 Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 2 Estimated factory overhead cost for fiscal 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 Factory 1 $12,000,000 320,000 $1,012,600 27,500 $8,360,000 440,000 $695,000 36.250 a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the entries to apply factory overhead to production in each factory for March. d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent over- or underapplied fac- tory overhead.

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Description: ectthe factory labor costs.ze the entry to apply factory overhead to production for November.EX 19-8 Factory overhead rates, entries, and account balanceMontenegro Metal Company operates two factories. The company applies factory overhead toobs onin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $811,040 $530,100 Estimated direct labor hours for year 9,300 Estimated machine hours for year 21,920 Actual factory overhead costs for August $64,850 $45,960 Actual direct labor hours for August 840 Actual machine hours for August 1,710 a. Determine the factory overhead rate for Factory 1.$fill in the blank d3b49f01b03efcf_1 per machine hour b. Determine the factory overhead rate for Factory 2.$fill in the blank d3b49f01b03efcf_2 per direct labor hour Question Content Area c. Journalize the entries to…
PROVIDE Answer
Journalize the entry to record the factory labor costs Journalize the entry to apply factory overhead to production for November.
Prepare an income statement
Factory overhead is applied to production based on direct labor cost. Jobs 101 and 103 are completed during the month. The cost of goods manufactured for the month of July is
Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $548,880 $835,200 Estimated direct labor hours for year 11,600 Estimated machine hours for year 22,870 Actual factory overhead costs for August $43,790 $71,880 Actual direct labor hours for August 1,040 Actual machine hours for August 1,780 Question Content Area a. Determine the factory overhead rate for Factory 1.$fill in the blank f94b7703c00e013_1 per machine hour b. Determine the factory overhead rate for Factory 2.$fill in the blank f94b7703c00e013_2 per direct labor hour c. Journalize the entries…
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: a. Materials purchased on account, $770,000. b. Materials requisitioned, $680,000, of which $75,800 was for general factory use. c. Factory labor used, $756,000, of which $182,000 was indirect. d. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. e. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. f. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. g. Factory overhead costs applied to jobs, $568,500. h. Jobs completed, $1,500,000. i. Cost of goods sold, $1,375,000. Required: Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it…
Factory Overhead Costs During May, Salinger Company incurred factory overhead costs as follows: indirect materials, $2,810; indirect labor, $5,530; utilities cost, $1,360; and factory depreciation, $4,030. Journalize the entry to record the factory overhead incurred during May. If an amount box does not require an entry, leave it blank.
Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $1,337,500 $847,000 Estimated direct labor hours for year 24,200 Estimated machine hours for year 53,500 Actual factory overhead costs for August $108,410 $96,900 Actual direct labor hours for August 2,720 Actual machine hours for August 4,400 Required: a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the Aug. 31 entries to apply factory overhead to production in each factory. d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the…
Factory Overhead Costs During August, Carrothers Company incurred factory overhead costs as follows: indirect materials, $3,110; indirect labor, $5,660; utilities cost, $1,210; and factory depreciation, $4,040. Journalize the entry to record the factory overhead incurred during August. If an amount box does not require an entry, leave it blank. Factory Overhead Materials Wages Payable Utilities Payable Accumulated Depreciation-Factory
Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $575,000, and total direct labor costs would be $460,000. During February, the actual direct labor cost totaled $40,000, and factory overhead cost incurred totaled $52,000. a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. % b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory Overhead-Blending Department? Amount: Debit or Credit? d. Does the balance in part (c) represent overapplied or underapplied factory overhead?