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I need the answers to C & D and please show me how you arrived at those answers. Thanks! Prostheses Industries operates two factories. The
I need the answers to C & D and please show me how you arrived at those answers. Thanks!
Prostheses Industries operates two factories. The manufacturing operations of Factory 1 are machine intensive, while the manufacturing operations of Factory 2 are labor intensive. 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 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 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 a. Determine the factory overhead rate for Factory 1. Round your answer to the nearest cent. $450,660 $900,000 12,000 21,460 $35,950 $77,760 1,080 1,670 21 per machine hour b. Determine the factory overhead rate for Factory 2. Round your answer to the nearest cent. 75 Vper direct labor hour c. Determine the factory overhead applied to production in each factory for January. Factory 1 Factory 2 d. Determine the balances of the factory accounts for each factory as of January 31, and indicate whether the amounts represent overapplied or underapplied factory overhead. Factory 1 Factory 2 overapplied underappliedStep by Step Solution
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