Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the...




Factory Overhead Rates, Entries, and Account Balance


Sundance 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 March 1$12,900,000$10,200,000
Estimated direct labor hours for year250,000
Estimated machine hours for year600,000
Actual factory overhead costs for March$1,082,500$840,833
Actual direct labor hours for March20,416
Actual machine hours for March50,833









a.Determine the factory overhead rate for Factory 1. Round the answer to two decimal places.
$fill in the blank 527c16016020022_1 per machine hour



b.Determine the factory overhead rate for Factory 2. Round the answer to two decimal places.
$fill in the blank 527c16016020022_2 per direct labor hour








Feedback









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. When required, round your answers to the nearest dollar.






























Factory 1Work in Processfill in the blank ea4b7b044fadfc3_2
Factory Overheadfill in the blank ea4b7b044fadfc3_4
Factory 2Work in Processfill in the blank ea4b7b044fadfc3_6
Factory Overheadfill in the blank ea4b7b044fadfc3_8






Feedback









c. Increase the work in process and reduce the factory overhead.
















d.Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. When required, round your answers to the nearest dollar.

















Factory 1$fill in the blank cc65e3f89079057_1CreditOverapplied

Correct


Factory 2$fill in the blank cc65e3f89079057_4DebitUnderapplied





Jun 08, 2022
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