Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance

The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $2,340,000 and total direct labor costs would be $1,800,000. During May, the actual direct labor cost totaled $145,000 and factory overhead cost incurred totaled $192,100.

a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.

____________%

b. Journalize the entry to apply factory overhead to production for May. If an amount box does not require an entry, leave it blank.

	Accounts Payable/Cash/Factory Overhead-Blending Department/Wages Payable/Work in Process-Blending Department	????	????
	Accounts Payable/Cash/Factory Overhead-Blending Department/Finished Goods/Work in Process-Blending Department	????	????

c. What is the May 31 balance of the account Factory OverheadBlending Department?

Amount:
Debit or Credit?

d. Does the balance in part (c) represent overapplied or underapplied factory overhead?