Factory Overhead Rates, Entries, and Account Balance 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 $441,560   $750,000   Estimated direct labor hours for year   12,500   Estimated machine hours for year 23,240     Actual factory overhead costs for August $35,250   $65,090   Actual direct labor hours for August   1,130   Actual machine hours for August 1,810     a.  Determine the factory overhead rate for Factory 1. $fill in the blank 2c6e52030040069_1 per machine hour b.  Determine the factory overhead rate for Factory 2. $fill in the blank 2c6e52030040069_2 per direct labor hour   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   - Select - - Select -     - Select - - Select - Factory 2   - Select - - Select -     - Select - - Select -   d.  Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1 $fill in the blank f61631068065f86_1     Factory 2 $fill in the blank f61631068065f86_4

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Factory Overhead Rates, Entries, and Account Balance

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 $441,560   $750,000  
Estimated direct labor hours for year   12,500  
Estimated machine hours for year 23,240    
Actual factory overhead costs for August $35,250   $65,090  
Actual direct labor hours for August   1,130  
Actual machine hours for August 1,810    

a.  Determine the factory overhead rate for Factory 1.
$fill in the blank 2c6e52030040069_1 per machine hour

b.  Determine the factory overhead rate for Factory 2.
$fill in the blank 2c6e52030040069_2 per direct labor hour

 

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
 
- Select - - Select -
 
 
- Select - - Select -
Factory 2
 
- Select - - Select -
 
 
- Select - - Select -
 

d.  Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.

Factory 1 $fill in the blank f61631068065f86_1
 
 
Factory 2 $fill in the blank f61631068065f86_4
 
 
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