Transfer Entries. The distribution of a company’s actual factory overhead for the past year is given as fol¬ lows. Budgeted factory overhead for the four producing departments (including apportioned service depart¬ ment costs) is also given for two levels of activity.

Actual Factory Overhead ABC Actual costs. $11,000 $16,000 $ 4,000 Z’s costs. 1,500 750 1,250 Y’s costs. 1,800 1,200 1,800 X’s costs. 2,000 1,000 1,200 Total. $16,300 $18,950 $ 8,250 D

X Y

z Total

$7,000

$ 3,000

$ 5,000

$ 6,000

$52,000 500 1,000 1,000

(6,000)

600 600

(6,000)

400

(4,600)

$8,500

$52,000 Budgeted Factory Overhead 20,000 Hours

(Normal) 16,000 Hours DepartmentA. $17,800 $15,000 Departments. 20,200 17,800 DepartmentC. 10,600 9,400 DepartmentD. 10,600 9.400 Total. $59,200 $51,600 The company uses a predetermined rate for each producing department, based on labor hours at the normal capacity level. Actual hours worked last year were 17,000 for Department A and 18,000 for Department B.

Required: Prepare entries to record the applied factory overhead for Department A and for Department B. (A single work in process account is used.)