Eclipse 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 August 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for August Actual direct labor hours for August Actual machine hours for August a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rat per direct labor hour Feedback. Factory $534,240 Factory 2 Work in Process ✔ Factory Overhead ✓ 19,080 $42,760 1,490 $613,800 9,900 $52,970 890 Check My Work 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 August. If an amount box does not require an entry, leave it blank. Factory 1 Work in Process✔ Factory Overhead ✓

Eclipse 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 August 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for August Actual direct labor hours for August Actual machine hours for August a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rat per direct labor hour Feedback. Factory $534,240 Factory 2 Work in Process ✔ Factory Overhead ✓ 19,080 $42,760 1,490 $613,800 9,900 $52,970 890 Check My Work 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 August. If an amount box does not require an entry, leave it blank. Factory 1 Work in Process✔ Factory Overhead ✓

Name: Eclipse Solar Company operates two factories. The company applies fac
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Description: Eclipse 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 ofdirect labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Malcolm Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The estimates for the year were: Manufacturing overhead $16,240 Direct labor hours 11,600 The actual results for the year were: Manufacturing overhead $21,700 Direct labor hours 13,000 The cost records for the year will show Group of answer choices Overapplied overhead of $5,460. Underapplied overhead of $5,460 Overapplied overhead of $ 3,500. Underapplied overhead of $3,500
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