Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies
Posted: Sun Jul 03, 2022 3:58 pm
Factory Overhead Rates, Entries, and Account Balance
Sundance Solar Company operates two factories. The companyapplies factory overhead to jobs on the basis of machine hours inFactory 1 and on the basis of direct labor hours in Factory 2.Estimated factory overhead costs, direct labor hours, and machinehours are as follows:
Question Content Area
a. Determine the factory overhead ratefor Factory 1.$fill in the blank 7fec7b06efe6035_1 per machine hour
b. Determine the factory overhead ratefor Factory 2.$fill in the blank 7fec7b06efe6035_2 per direct labor hour
Question Content Area
c. Journalize the entries to applyfactory overhead to production in each factory for March.
Accounts ReceivableCashFactory OverheadFinishedGoodsMaterialsWork in Process
Accounts PayableAccounts ReceivableCashFactory OverheadFinishedGoodsWork in Process
Accounts PayableCashFactory OverheadFinished GoodsMaterialsWorkin Process
Accounts PayableCashFactory OverheadFinished GoodsMaterialsWorkin Process
Question Content Area
d. Determine the balances of the factoryoverhead accounts for each factory as of March 31, and indicatewhether the amounts represent overapplied factoryoverhead or underapplied factory overhead.
CreditDebit
OverappliedUnderapplied
CreditDebit
Sundance Solar Company operates two factories. The companyapplies factory overhead to jobs on the basis of machine hours inFactory 1 and on the basis of direct labor hours in Factory 2.Estimated factory overhead costs, direct labor hours, and machinehours are as follows:
Question Content Area
a. Determine the factory overhead ratefor Factory 1.$fill in the blank 7fec7b06efe6035_1 per machine hour
b. Determine the factory overhead ratefor Factory 2.$fill in the blank 7fec7b06efe6035_2 per direct labor hour
Question Content Area
c. Journalize the entries to applyfactory overhead to production in each factory for March.
Accounts ReceivableCashFactory OverheadFinishedGoodsMaterialsWork in Process
Accounts PayableAccounts ReceivableCashFactory OverheadFinishedGoodsWork in Process
Accounts PayableCashFactory OverheadFinished GoodsMaterialsWorkin Process
Accounts PayableCashFactory OverheadFinished GoodsMaterialsWorkin Process
Question Content Area
d. Determine the balances of the factoryoverhead accounts for each factory as of March 31, and indicatewhether the amounts represent overapplied factoryoverhead or underapplied factory overhead.
CreditDebit
OverappliedUnderapplied
CreditDebit