Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Factory Overhead Rates, Entries, and Account Balance Hudson Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours
Factory Overhead Rates, Entries, and Account Balance Hudson 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.gverhead costs, direct la hours, and machine hours are as follows Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning June 1 $554,630 $738,300 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for June Actual direct labor hours for June Actual machine hours for June a. Determine the factory overhead rate for Factory 1. Round your answer to the nearest cent. 10,700 14,990 $44,370 $63,590 960 1,170 per machine hour b. Determine the factory overhead rate for Factory 2. Round your answer to the nearest cent. per direct labor hour c. Determine the factory overhead applied to production in each factory for June. Factory 1 Factory 2 d. Determine the balances of the factory accounts for each factory as of June 30, and indicate whether the amounts represent overapplied or underapplied factory overhead Factory 1 Factory 2 Select V Select overapplied underapplied
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started