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 $840,833 Actual direct labor hours for March 20,416 Actual machine hours for March 50,833 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. 2$ 21.50 V per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. 40.80 per direct labor hour

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 $840,833 Actual direct labor hours for March 20,416 Actual machine hours for March 50,833 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. 2$ 21.50 V per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. 40.80 per direct labor hour

Name: Sundance Solar Company operates two factories. The company applies fa
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Description: 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 factoryoverhead costs, direct labor hours, and mach

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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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 $1,337,700 $950,400 Estimated direct labor hours for year 26,400 Estimated machine hours for year 51,450 Actual factory overhead costs for March $110,730 $107,750 Actual direct labor hours for March 2,940 Actual machine hours for March 4,320 Required: a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the Mar. 31 entries to apply factory overhead to production in each factory. Refer to the chart of accounts for the exact wording of the account titles. d. Determine the balances of the factory overhead…
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Sohar Factory applies manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year as follows: Actual manufacturing overhead OMR 360,000 costs Estimated manufacturing overhead 1,500,000 Actual machine hours used 10,000 Estimated machine hours 300,000 Estimated labor hours 6,000 Actual labor hours 7,500 The amount of manufacturing overhead to be applied is:
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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 $362,400 $1,086,300 Estimated direct labor hours for year 15,300 Estimated machine hours for year 18,120 Actual factory overhead costs for March $28,900 $94,060 Actual direct labor hours for March 1,380 Actual machine hours for March 1,410 a. Determine the factory overhead rate for Factory 1.$fill in the blank 383b40fc4fee048_1 per machine hour b. Determine the factory overhead rate for Factory 2.$fill in the blank 383b40fc4fee048_2 per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. Factory…
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