a A=81,500

#2 Lizzie Incorporated processes large pieces of granite into finely finished countertops. Production occurs in two phases - sawing and polishing. The sawing phase is almost entirely automated and costs are largely driven by processing time on a computerized sawing machine. Polishing is a labor intensive process, and the amount of time on a particular job varies considerably based on the intrinsic stone quality and the desired sheen for a particular job. These estimates were used to determine the applicable factory overhead application rates: Direct labor Direct materials Factory overhead Direct labor hours Machine hours Sawing 20,000 A 300,000 30,000 A Polishing $ 1,000,000 60,000 $ 200,000 A 20,000 At the end of the year, the company determined that actual data was as follows: Direct labor Direct materials Factory overhead Direct labor hours Sawing machine hours Sawing 30,000 A 290,000 24,000 90,000 Polishing $ 926,000 $ 54,000 215,000 75,300 15,111 (a) Select a variable "A" a number between 81,111 and 81,999 (b) Calculate the predetermined factory overhead allocation rate based on factory-wide direct material costs. Journalize the application of overhead for the year and any true-up of under or over-applied factory overhead at the end of the year, if necessary. Show the journal entries and the general ledger T account for the Factory Overhead control account. (10 points) (c) Calculate the predetermined factory overhead allocation rate based on a departmental basis using machine hours for the Sawing departent and direct labor hours for the Polishing department. Journalize the application of overhead for the year and any true-up of under or over-applied factory overhead at the end of the year, if necessary. Show the journal entries and the general ledger T account for the Factory Overhead control account. (15 points)