The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $147,000, and total direct labor costs would be $105,000. During April, the actual direct labor cost totaled $12,000, and factory overhead cost incurred totaled $17,050.

Required:

A. What is the predetermined factory overhead rate based on direct labor cost?

B. On April 30, journalize the entry to apply factory overhead to production. Refer to the Chart of Accounts for exact wording of account titles.

C. What is the April 30 balance of the account Factory Overhead-Blending Department?

D. Does the balance in part (c) represent over- or underapplied factory overhead?

ASSETS

110 Cash

121 Accounts Receivable

125 Notes Receivable

126 Interest Receivable

131 Materials

141 Work in Process-Blending Department

142 Work in Process-Filling Department

151 Factory Overhead-Blending Department

152 Factory Overhead-Filling Department

161 Finished Goods

171 Supplies

172 Prepaid Insurance

173 Prepaid Expenses

181 Land

191 Factory

192 Accumulated Depreciation-Factory

LIABILITIES

210 Accounts Payable

221 Utilities Payable

231 Notes Payable

236 Interest Payable

251 Wages Payable

EQUITY

311 Common Stock

340 Retained Earnings

351 Dividends

390 Income Summary

REVENUE

410 Sales

610 Interest Revenue

EXPENSES

510 Cost of Goods Sold

520 Wages Expense

531 Selling Expenses

532 Insurance Expense

533 Utilities Expense

534 Supplies Expense

540 Administrative Expenses

561 Depreciation Expense-Factory

590 Miscellaneous Expense

710 Interest Expense

A. What is the predetermined factory overhead rate based on direct labor cost?

%

B. On April 30, journalize the entry to apply factory overhead to production. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

C. What is the April 30 balance of the account Factory Overhead-Blending Department?

Amount:
Debit or credit?

D. Does the balance in C. represent over- or underapplied factory overhead?