1.

Job Costs

At the end of August, Kaye Company had completed Jobs 40 and 42. Job 40 is for 200 units, and Job 42 is for 2,000 units.

The following data relate to these two jobs:

On August 4, raw materials were requisitioned for production as follows: 300 units for Job 40 at $22 per unit and 1,300 units for Job 42 at $18 per unit.

During August, Kaye Company accumulated 700 hours of direct labor costs on Job 40 and 600 hours on Job 42. The total direct labor was incurred at a rate of $10 per direct labor hour for Job 40 and $20 per direct labor hour for Job 42.

The predetermined factory overhead rate is $13.00 per direct labor hour.

a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.

Job 40	$
Job 42	$

b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.

Job 40	$
Job 42	$

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	$748,020		$1,006,200
Estimated direct labor hours for year				12,900
Estimated machine hours for year		17,810
Actual factory overhead costs for March		$59,840		$86,860
Actual direct labor hours for March				1,160
Actual machine hours for March		1,390

a. Determine the factory overhead rate for Factory 1. $ per machine hour

b. Determine the factory overhead rate for Factory 2. $ per direct labor hour

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

Factory 1
Factory 2

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	$
Factory 2	$

3.

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	$3,620
Job 202	1,810
Job 203	1,430
Job 204	2,660
Factory supervision	1,240

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $14 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.

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