a. Determine the factory overthead rate for Factory 1.per machine hourb. Determine the factory overhead rate for Factory 2.per direct labor hourC. Journalize the entries to apply factory overhead to production in each factory for March.Factory 1Factory 2d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounti represent overplied factory etalaunderapplied factory overhead.Factory 1Factory 2 SNed(Prvos Factory Overhead Rates, Entries, and Account BalanceSundance Solar Company operates two factories. The company apphes factory overhead to jobs on the bauis of machine hours in Factory 1 and on the basis of direct labor hours inFactory 2. Estimated factory ovethead costs, direct labor hours, and machine hours are as follows:Factory 1Factory ?Estimated factory overhead cost for fiscalvear beginning March 1$611,100$1,004,800Estimated direct labor hours for year15,700Estimated machine hours for year17,460Actual factory overhead costs for March$46,790$86,630Actual direct labor hours for March1,410Actual machine hours for March1,360a. Determine the factory overhead rate for Factory 1.per machine hourb. Determine the factory overhead rate for Factory 2.per direct labor hourc. Journalize the entries to apply factory overhead to production in each factory for March.Factory 1Check My Work( PreviousNext

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Description: a. Determine the factory overthead rate for Factory 1.per machine hourb. Determine the factory overhead rate for Factory 2.per direct labor hourC. Journalize the entries to apply factory overhead to production in each factory for March.Factory 1Fact

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Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company appbes factory overhead to jobs on the bais of machine hours in Factory 1 and on the basis of drect labor hours in Factory 2. Estimated factory overhead costs, direct labor houts, and machine hours are as follows Factory I Factory 2 Estimated factory overhead cost for fiscal year beginining March 1 $611,100 $1,004,800 Estimated direct labor hours for year 15,700 Estimated niachine hours for year 17,460 Actual factory overhead costs for March $48,790 $86,630 Actual direct labor hours for March 1,410 Actual machine hours for March 1,360 a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour C. Journalze the entries to apply factory overhead to production in each factory for March. Factory 1

Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company appbes factory overhead to jobs on the bais of machine hours in Factory 1 and on the basis of drect labor hours in Factory 2. Estimated factory overhead costs, direct labor houts, and machine hours are as follows Factory I Factory 2 Estimated factory overhead cost for fiscal year beginining March 1 $611,100 $1,004,800 Estimated direct labor hours for year 15,700 Estimated niachine hours for year 17,460 Actual factory overhead costs for March $48,790 $86,630 Actual direct labor hours for March 1,410 Actual machine hours for March 1,360 a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour C. Journalze the entries to apply factory overhead to production in each factory for March. Factory 1

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 9E: Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the...

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Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
MountaIn Peaks applies overhead on the basis of machine hours and reports the following information: A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over- or under applied, and by what amount? D. What is the journal entry to dispose of the over- or under applied overhead?
Mountain Tops applies overhead on the basis of direct labor hours and reports the following information: A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over applied or under applied, and by what amount? D. What is the journal entry to dispose of the over applied or under applied overhead?
Bangor Products Co. obtained the following information from its records for April: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record issuing materials to production, the distribution of labor, and overhead costs; the completion of the jobs; and the sale of the jobs. 2. Prepare schedules computing the following for April: a. The gross profit or loss for each job completed and for the business as a whole. b. For each job, the gross profit or loss per unit. (Round to the nearest cent.)
The actual overhead for a company is $73,175. Overhead was based on 4,500 machine hours and was $3,325 over applied for the year. What is the overhead application rate per direct labor hour? What is the journal entry to dispose of the under applied overhead?
Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000 for the year. Direct labor hours are estimated to be 80,000. For Bergan Company, (A) determine the predetermined factory overhead rate using direct labor hours as the activity base, (B) determine the amount of factory overhead applied to Jobs 200 and 305 in May using the data on direct labor hours from BE 16-2, and (C) prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate.
Spokane Production Co. obtained the following information from its records for July: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record issuing materials to production, the distribution of labor, and overhead costs; the completion of the jobs; and the sale of the jobs. 2. Prepare schedules computing the following for July: a. The gross profit or loss for each job completed and sold, and for the business as a whole. b. For each job, the gross profit or loss per unit. (Round to the nearest cent.)
Entry for factory labor costs The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: The direct labor rate earned per hour by the three employees is as follows: The process improvement category includes training, quality improvement, and other indirect tasks. A. Journalize the entry to record the factory labor costs for the week. B. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements at the end of the week?
A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Using the information provided. A. What is the balance in work in process? B. What Is the balance in the finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?
When direct labor hours for Job 101 are 30 and the predetermined factory overhead rate is 5/direct labor hour, what is the applied factory overhead amount? (a) 250 (b) 500 (c) 150 (d) It cannot be determined.
Monterrey Products Co. uses the process cost system. A record of the factory operations for the month of October follows: Required: Prepare a cost of production summary, assuming that the production losses are considered to be normal.
JOURNAL ENTRIES FOR FACTORY OVERHEAD Huang Company manufactures toys. It keeps a factory overhead account where actual factory overhead costs are recorded as a debit, and factory overhead applied is recorded as a credit. At the end of the month, under- or overapplied factory overhead is calculated and transferred to the cost of goods sold account. For the month of January, Huang had the following overhead transactions. Make appropriate general journal entries to record factory overhead and factory overhead applied, and to close the under- or overapplied factory overhead to the cost of goods sold account. Jan.1 Paid rent, 1,000. 10 Paid electricity bill, 250. 15 Paid repair expense, 1,500. 21 Vacation pay for machine operator, 500 (Wages Payable). 31 Depreciation expense for the month, 450. 31 Factory overhead applied was 3,500.