Instructions Chart of Accounts Factory Overhead Rates Journal Final Question Instructions 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 2 Factory 1 $1,478.250 $1,023,050 Estimated factory overhead cost for fiscal year beginning August 1 Estimated direct labor hours for year 27,650 Estimated machine hours for year 54,750 Actual factory overhead costs for August $111,040 $103,620 Actual direct labor hours for August 2,750 Actual machine hours for August 4,170 Required: a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. C. Journalize the Aug. 31 entries to apply factory overhead to production in each factory. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 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. Enter all amounts as positive numbers. Instructions Chart of Accounts Factory Overhead Rates Journal Final Question Chart of Accounts 192 Accumulated Depreciation-Factory 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary Instructions Chart of Accounts Factory Overhead Rates Journal Final Question Factory Overhead Rates a. Determine the factory overhead rate for Factory 1. $ per machine hour b. Determine the factory overhead rate for Factory 2. $ per direct labor hour Instructions Chart of Accounts Factory Overhead Rates Journal Final Question Journal C. Journalize the Aug. 31 entry to apply factory overhead to production in Factory 1. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Scroll down to record the entry for Factory 2. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Now journalize the second Aug. 31 entry to apply factory overhead to production in Factory 2. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 Final Question X 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. Enter all amounts as positive numbers. Factory 1 $ Factory 2 $