The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Departme
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The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Departme
The chief cost accountant for Voltaire Beverage Co. estimatedthat total factory overhead cost for the Blending Department forthe coming fiscal year beginning May 1 would be $210,000 and totaldirect labor costs would be $150,000. During May, the actual directlabor cost totaled $12,000 and factory overhead cost incurredtotaled $17,100. Required: a. What is the predetermined factoryoverhead rate based on direct labor cost? b. On May 31, journalizethe entry to apply factory overhead to production. Refer to thechart of accounts for the exact wording of the account titles. CNOWjournals do not use lines for journal explanations. Every line on ajournal page is used for debit or credit entries. CNOW journalswill automatically indent a credit entry when a credit amount isentered. c. What is the May 31 balance of the account FactoryOverhead-Blending Department? d. Does the balance in part crepresent over- or underapplied factory overhead?