Bronzing Casting Finishing

Materials used............... $20,000 $10,000 $10,000

Direct labor cost................ $ 8,000 $ 5,000 $ 9,000

Direct labor hours.............. 1,000 500 1,620

Machine hours............. 4,000 5,000 2,025

Factory overhead........ $20,000 $10,000 $16,200

The job cost system is used, and the February cost sheet for Job M45 shows the following:

Bronzing Casting Finishing

Materials used....... $20.00 $40.00 $20.00

Direct labor cost............... $64.00 $60.00 $54.00

Direct labor hours........ 8 6 6

Machine hours............ 2 3 1

The following actual information was accumulated during February:

Bronzing Casting Finishing

Direct labor hours........ 15,000 9,800 20,000

Factory overhead...... $350,000 $220,000 $325,000

Required:

1. Using the January data, ascertain the factory overhead application rates to be used during February, based on the following:

a.Direct labor cost

b.Direct labor hours

c.Machine hours

2. Prepare a schedule showing the total production cost of Job M45 under each method of applying factory overhead.

3.Prepare the entries to record the following for February operations:

a.The liability for total factory overhead.

b.Distribution of factory overhead to the departments.

c..Application of factory overhead to the work in process, using direct labor hours. (Use the predetermined rate calculated in Requirement 1 and separate applied overhead accounts for each department.)

d.Closing of the applied factory overhead accounts.

e.Recording underapplied and overapplied factory overhead and closing the actual factory overhead accounts.

1.	Application Rates
	Basis			Bronzing	Casting	Finishing
a.	Direct labor cost..			%	%	%
b.	Direct labor hours
c.	Machine hours.
2.	Cost of Production
Job M45 -- Direct Labor Cost Method			Bronzing	Casting	Finishing	Total
	Materials
	Direct labor cost..
	Factory overhead.
	Total production cost..
Job M45 -- Direct Labor Hour Method			Bronzing	Casting	Finishing	Total
	Materials
	Direct labor cost..
	Factory overhead.
	Total production cost..
Job M45 -- Machine Hour Method			Bronzing	Casting	Finishing	Total
	Materials
	Direct labor cost..
	Factory overhead.
	Total production cost..
3.	Journal Entries			DR	CR
a.
b.
c.
d.
e.