(course code:ACCT 231) Cost and Management Accounting Assignment E12-7 Entries for Factory Overhead. Black Inc. assembles and sells hand drills. All parts are purchased, and the cost of the parts per drill cost $50. Labor is paid on the basis of $32 per drill assembled. Because the company handles only this one product, the unit cost base is used for applying factory overhead at a predetermined rate. Estimated factory overhead for the coming period, based on a production of 30,000 drills, is as follows: Indirect materials.. $220,000 Indirect labor 240,000 Light and power. 30,000 Depreciation.. 25,000 Miscellaneous 55,000 During the period, actual factory overhead was $561,600 and 29,000 drills were assembled. These units were completed not yet transferred to the finished goods storeroom. Required: (1) Prepare the journal entries to record the preceding information (2) Determine the amount of over-or underapplied factory overhead P12-6 Inventory Costing; Overhead Analysis,; Statement of Cost of Goods Sold. Dagnut Company set normal capacity at 60,000 machine hours. The expected operating level for the period just ended was 45,000 hours. At this expected actual capacity, variable expenses were estimated to be $29,250 and fixed expenses, $18,000. Actual results show that 47,000 machine hours were used and that actual factory overhead totaled $48,000 during the period. Required: (1) Compute the predetermined factory overhead rate based on normal capacity. (2) Compute the predetermined factory overhead rate based on expected actual capacity. (3) Compute the amount of factory overhead charged to production if the company used the normal capacity rate. (4) Compute the amount of factory overhead charged to production if the company used the expected actual capacity rate. (5) Compute the amount of over-or underapplied overhead if the company used the expected actual capacity rate.