Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $621,400, and total direct labor costs would be $478,000. During February, the actual direct labor cost totaled $41,000, and factory overhead cost incurred totaled $55,450. a.  What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. fill in the blank fd625102406305d_1 % b.  Journalize the entry to apply factory overhead to production for February.     fill in the blank 3a5f0e07ffbb021_2 fill in the blank 3a5f0e07ffbb021_3     fill in the blank 3a5f0e07ffbb021_5 fill in the blank 3a5f0e07ffbb021_6 c.  What is the February 28 balance of the account Factory Overhead—Blending Department? Amount: $fill in the blank a7ab19061f8e051_1 Debit or Credit?   d.  Does the balance in part (c) represent overapplied or underapplied factory overhead?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance

The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $621,400, and total direct labor costs would be $478,000. During February, the actual direct labor cost totaled $41,000, and factory overhead cost incurred totaled $55,450.

a.  What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.
fill in the blank fd625102406305d_1 %

b.  Journalize the entry to apply factory overhead to production for February.

    fill in the blank 3a5f0e07ffbb021_2 fill in the blank 3a5f0e07ffbb021_3
    fill in the blank 3a5f0e07ffbb021_5 fill in the blank 3a5f0e07ffbb021_6

c.  What is the February 28 balance of the account Factory Overhead—Blending Department?

Amount: $fill in the blank a7ab19061f8e051_1
Debit or Credit?  

d.  Does the balance in part (c) represent overapplied or underapplied factory overhead?
 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education