Name: BE 263: Cost Accounting Examination #2 Mod 3, Spring 2020 Problem 1(40 points) The controller has asked you to distribute and record factory overhead to the various production orders that are processed during a year. The following information was taken from the annual budget: Direct labor hours Machine hours 84,000 120,000 Manufacturing costs: Direct labor Direct materials Indirect labor Electric power Payroll taxes Machine maintenance and repair Factory supplies Factory heat and light Depreciation, taxes, and insurance: Factory buildings Machinery $525,000 100,000 75,000 48,000 12,600 9, 200 16,000 14,000 135,000 320, 200 $1,335,000 Actual results for the year follow: Direct labor hours Machine hours B5,000 110,000 Manufacturing costs: Direct labor Direct material Factory overhead $ 540,000 200,000 625,000 $1,365,000 Required: a. Determine the factory overhead application rate under the direct labor hour method (show calculations). b. Determine the under-or over-applied factory overhead (show calculations). c. Prepare the entries to record the following: 1. The liability for total factory overhead. 2. Application of factory overhead to work in process, using direct labor hours. 3. Close the applied factory overhead account. 4. Record under-or over-applied factory overhead and close actual factory overhead