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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
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 and on the basis of direct labor hours in Factory Estimated factory overhead costs, direct labor hours, and machine hours are as follows:
Item Line Description Factory Factory
Estimated factory overhead cost for fiscal year beginning August $ $
Estimated direct labor hours for year
Estimated machine hours for year
Actual factory overhead costs for August $ $
Actual direct labor hours for August
Actual machine hours for August
Question Content Area
a Determine the factory overhead rate for Factory
fill in the blank of $
per machine hour
b Determine the factory overhead rate for Factory
fill in the blank of $
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.
TransactionAccountDebitCredit
Factory
Factory
Feedback Area
Feedback
c Increase the work in process and reduce the factory overhead.
Question Content Area
d Determine the balances of the factory overhead accounts for each factory as of August and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.
Item Amount Debit or Credit Underapplied or Overapplied
Factory fill in the blank of $
Factory fill in the blank of $
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