Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tiny Biggs Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the

Tiny Biggs 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 September 1 $1,337,500 $847,000
Estimated direct labor hours for year 24,200
Estimated machine hours for year 53,500
Actual factory overhead costs for September $108,410 $96,900
Actual direct labor hours for September 2,720
Actual machine hours for September 4,400

Required:

A. Determine the factory overhead rate for Factory 1.
B. Determine the factory overhead rate for Factory 2.
C. Journalize the Sep. 30 entries to apply factory overhead to production in each factory for September. Refer to the Chart of Accounts for exact wording of account titles.
D. Determine the balances of the factory overhead accounts for each factory as of September 30, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Contractors AICPA Audit And Accounting Guide

Authors: American Institute Of CPAs

1st Edition

0870519751, 978-0870519758

More Books

Students also viewed these Accounting questions