1. What is (A) over applied factory overhead and (B) under applied factory overhead? If the factory overhead account has a debit balance at the end of period, was factory overhead under applied or over applied? Factory overhead is a temporary account closed at the end of each period. Factory overhead is closed to what account?
2. What events cause debits to be recorded in the Factory Overhead account?What events cause credits to be recorded in the Factory Overhead account?
3. Why must a company estimate the amount of factory overhead assigned to individual jobs or job lots?