Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

19.4 Factory Overhead Rates, Entries, and Account Balance Montenegro Metal Company operates two factories. The company applles factory overhead to jobs on the basis of

19.4 image text in transcribed
image text in transcribed
Factory Overhead Rates, Entries, and Account Balance Montenegro Metal Company operates two factories. The company applles factory overhead to jobs on the basis of machine hours in Factory 1 and or 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 $439,800 $719,400 Estimated direct labor hours for year 10,900 Estimated machine hours for year 14,660 Actual factory overhead costs for March $35,060 $62,090 Actual direct labor hours for March Actual machine hours for March 1,140 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 980 c. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, leave it blank Factory 1 $35,060 $62,090 980 1,140 Actual factory overhead costs for March Actual direct labor hours for March Actual machine hours for March a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour C. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, leave it blank. Factory 1 Factory 2 d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1$ Factory 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting An International Approach

Authors: Jagdish Kothari, Elisabetta Barone

1st Edition

0273712748, 978-0273712749

More Books

Students also viewed these Accounting questions

Question

Be prepared to address excessive absenteeism

Answered: 1 week ago