Factory Overhead Rates, Entries, and Account Balance Sundance 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 March1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for March Actual direct labor hours for March Actual machine hours for March a. Determine the factory overhead rate for Factory 1. $491,700$768,000 12,800 16,390 $39,360 $66,240 1,150 1,280 per machine hour per direct labor hour b. Determine the factory overhead rate for Factory 2. c. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 - C. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 Factory 2 d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead Factory 1 Factory 2 Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November are summarized as follows: Job 201 Job 202 Job 203 Job 204 Factory supervision Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $14 per hour If required, round final answers to the nearest dollar jobs $3,400 1,700 1,340 2,520 1,160 a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank b. Journalize the entry to apply factory qverhead to production for November surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies Depreciation expense Utilities Nurse salaries Technician wages $367,200 66,200 38,500 551,400 180,700 $1,204,000 Total operating room overhead The overhead costs will be assigned to procedures based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addtion, the operating room willbe shut down two weeks per year for general repairs a. Calculate the estimated number of operating room hours for the year. hours b. Determine the predetermined operating room overhead rate for the year per hour c. Bill Harris had a 7-hour procedure on January 22. How much operating room overhead would be charged to his precedure, using the rate determined in part (b)? d. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $78,200. Determine the overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number
