Question

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

Answer 1

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