Hudson Company operates two factories. The company applies factory overhead to jobs on the basis of machine
Question:
Hudson 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:
a. Determine the factory overhead rate for Factory 1.b. Determine the factory overhead rate for Factory 2.c. Journalize the entries to apply factory overhead to production in each factory forJune.d. Determine the balances of the factory accounts for each factory as of June 30, and indicate whether the amounts represent overapplied or underapplied factoryoverhead.
Factory 1 Factory 2 Estimated factory overhead cost for fiscal $475,000 $600,000 year beginning June 1 Estimated direct labor hours for year 15,000 Estimated machine hours for year 20,000 $38,000 $52,000 Actual factory overhead costs for June 1,350 Actual direct labor hours for June 1,560 Actual machine hours for June
Step by Step Answer:
a Factory 1 2375 per machine hour 47500020000 machi...View the full answer
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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