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 1 fill in the blank d3336f00ffce068_2 fill in the blank d3336f00ffce068_4 Factory 2 fill in the blank d3336f00ffce068_6 fill in the blank d3336f00ffce068_8 d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1 $fill in the blank c4c3edf69063fc1_1 Factory 2 $fill in the blank c4c3edf69063fc1_4
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.
Sundance Solar Company operates two factories. The company applies factory
| 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.
| Factory 1 | fill in the blank d3336f00ffce068_2 | ||
| fill in the blank d3336f00ffce068_4 | |||
| Factory 2 | fill in the blank d3336f00ffce068_6 | ||
| fill in the blank d3336f00ffce068_8 |
d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.
| Factory 1 | $fill in the blank c4c3edf69063fc1_1 | ||
| Factory 2 | $fill in the blank c4c3edf69063fc1_4 |
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