1. Entries for Direct Labor and Factory Overhead

Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:

Job 201	$4,840
Job 202	2,420
Job 203	1,910
Job 204	3,570
Factory supervision	1,660

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $13 per hour.

If required, round final answers to the nearest dollar.

a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

	Work in Process	fill in the blank 9878b9003ff4005_2	fill in the blank 9878b9003ff4005_3
	Factory Overhead	fill in the blank 9878b9003ff4005_5	fill in the blank 9878b9003ff4005_6
	Wages Payable	fill in the blank 9878b9003ff4005_8	fill in the blank 9878b9003ff4005_9

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a. Increase the work in process for the direct labor and factory overhead for the indirect labor.

b. Journalize the entry to apply factory overhead to production for November.

	Work in Process	fill in the blank 1174a3fccfe8fb4_2
	Factory Overhead		fill in the blank 1174a3fccfe8fb4_4

2. Factory Overhead Rates, Entries, and Account Balance

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	$566,300		$877,200
Estimated direct labor hours for year				12,900
Estimated machine hours for year		16,180
Actual factory overhead costs for March		$45,200		$75,720
Actual direct labor hours for March				1,160
Actual machine hours for March		1,260

a. Determine the factory overhead rate for Factory 1. $fill in the blank a8c8bbfb4fd4042_1 per machine hour

b. Determine the factory overhead rate for Factory 2. $fill in the blank a8c8bbfb4fd4042_2 per direct labor hour

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a-b. Factory 1 overhead is applied based on machine hours. Factory 2 overhead is applied based on direct labor hours.

c. Journalize the entries to apply factory overhead to production in each factory for March.

Factory 1		fill in the blank 0d1386fbcfac062_2
			fill in the blank 0d1386fbcfac062_4
Factory 2		fill in the blank 0d1386fbcfac062_6
			fill in the blank 0d1386fbcfac062_8

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c. Increase the work in process and reduce the factory overhead.

d. Determine 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 95d7c6fecff0004_1	Debit	Underapplied
Factory 2	$fill in the blank 95d7c6fecff0004_4	Credit	Overapplied