actory Overhead Rates, Entries, and Account Balance Sundance 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 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $12,900,000 $10,200,000 Estimated direct labor hours for year 250,000 Estimated machine hours for year 600,000 Actual factory overhead costs for March $1,082,500 $840,833 Actual direct labor hours for March 20,416 Actual machine hours for March 50,833 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places.$ per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places.$ per direct labor hour Feedback a-b. Factory 1 overhead is applied based on machine hours. Factory 2 overhead is applied based on direct labor hours. c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar. Factory 1 Work in Process Cash Accounts Payable Factory Overhead Finished Goods Materials Work in Process Factory Overhead Accounts Payable Accounts Receivable Cash Factory Overhead Finished Goods Work in Process Factory 2 Work in Process Accounts Payable Accounts Receivable Cash Finished Goods Materials Work in Process Factory Overhead Accounts Payable Accounts Receivable Cash Factory Overhead Finished Goods Work in Process Feedback c. Increase the work in process and reduce the factory overhead. d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent The amount of factory overhead applied in excess of the actual factory overhead costs incurred for production during a period.overapplied factory overhead or The amount of actual factory overhead in excess of the factory overhead applied to production during a period.underapplied factory overhead. When required, round your answers to the nearest dollar. Factory 1 $ Credit Credit Debit Overapplied Overapplied Underapplied Factory 2 $ Debit Credit Debit Underapplied Overapplied Underapplied Feedback d. Compare the actual cost and the applied cost. Feedback Partially correct Loading item There was an error loading this item. If this continues to occur, please contact Technical Support. Check My Work Previous Next 100% Correct Partially Correct Incorrect Needs Instructor Grading Basic Calculatorclose 0 UseEntBSBSpCEHomCEnd 789+ 456- 123* 0.=/
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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actory
Overhead Rates, Entries, and Account BalanceSundance 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 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $12,900,000 $10,200,000 Estimated direct labor hours for year 250,000 Estimated machine hours for year 600,000 Actual factory overhead costs for March $1,082,500 $840,833 Actual direct labor hours for March 20,416 Actual machine hours for March 50,833 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places.
$ per machine hourb. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places.
$ per direct labor hourFeedbacka-b. Factory 1 overhead is applied based on machine hours. Factory 2 overhead is applied based on direct labor hours.
c.
Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar.Factory 1 Work in Process - Cash
- Accounts Payable
- Factory Overhead
- Finished Goods
- Materials
- Work in Process
Factory Overhead - Accounts Payable
Accounts Receivable - Cash
- Factory Overhead
- Finished Goods
- Work in Process
Factory 2 Work in Process - Accounts Payable
- Accounts Receivable
- Cash
- Finished Goods
- Materials
- Work in Process
Factory Overhead - Accounts Payable
- Accounts Receivable
- Cash
- Factory Overhead
- Finished Goods
- Work in Process
Feedbackc. Increase the work in process and reduce the factory overhead.
d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent The amount of factory overhead applied in excess of the actual factory overhead costs incurred for production during a period.overapplied factory overhead or The amount of actual factory overhead in excess of the factory overhead applied to production during a period.underapplied factory overhead. When required, round your answers to the nearest dollar.
Factory 1 $ Credit - Credit
- Debit
Overapplied - Overapplied
- Underapplied
Factory 2 $ Debit - Credit
- Debit
Underapplied - Overapplied
- Underapplied
Feedbackd. Compare the actual cost and the applied cost.
FeedbackPartially correct
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