Factory Overhead Rates, Entries, and Account Balance

Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on 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 August 1	$673,030		$598,500
Estimated direct labor hours for year				9,500
Estimated machine hours for year		18,190
Actual factory overhead costs for August		$53,850		$52,010
Actual direct labor hours for August				860
Actual machine hours for August		1,420

Question Content Area

a. Determine the factory overhead rate for Factory 1. $fill in the blank per machine hour

b. Determine the factory overhead rate for Factory 2. $fill in the blank per direct labor hour

Question Content Area

c. Journalize the entries to apply factory overhead to production in each factory for August. If an amount box does not require an entry, leave it blank.

Factory 1	Accounts ReceivableCashFactory OverheadFinished GoodsMaterialsWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashFactory OverheadFinished GoodsWork in Process	- Select -	- Select -
Factory 2	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in Process	- Select -	- Select -
	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in Process	- Select -	- Select -

Question Content Area

d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.

Factory 1	$fill in the blank e6efbf079fe3041_1	Credit Debit	Overapplied Underapplied
Factory 2	$fill in the blank e6efbf079fe3041_4	Credit Debit	Overapplied Underapplied