Question

# Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis...

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 \$580,500 \$540,000 Estimated direct labor hours for year 9,000 Estimated machine hours for year 23,220 Actual factory overhead costs for March \$46,380 \$46,660 Actual direct labor hours for March 810 Actual machine hours for March 1,810 a. Determine the factory overhead rate for Factory 1. \$fill in the blank 1bcb24057066fe4_1 per machine hour b. Determine the factory overhead rate for Factory 2. \$fill in the blank 1bcb24057066fe4_2 per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 fill in the blank fa404201d06600d_2 fill in the blank fa404201d06600d_4 Factory 2 fill in the blank fa404201d06600d_6 fill in the blank fa404201d06600d_8 dDetermine 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. Factory 1 \$fill in the blank ec3f3109f03c030_1 Factory 2 \$fill in the blank ec3f3109f03c030_4

 a Factory overhead rate 25 per machine hour =580500/23220 b Factory overhead rate 60 per direct labor hour =540000/9000 c Factory 1 Work in process 45250 =1810*25 Factory overhead 45250 Factory 2 Work in process 48600 =810*60 Factory overhead 48600 d Factory 1 1130 Debit Underapplied =46380-45250 Factory 2 1940 Credit Overapplied =48600-46660