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 $3,150,000, and total direct labor costs would be $1,800,000. During February, the actual direct labor cost totaled $160,000, and factory overhead cost incurred totaled $283,900. a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. b. Journalize the entry to apply factory overhead to production for February. If an amount box does not require an entry, leave it blank. c. What is the February 28 balance of the account Factory Overhead-Blending Department? Amount: Debit or Credit? d. Does the balance in part (c) represent overapplied or underapplied factory overhead?

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 $3,150,000, and total direct labor costs would be $1,800,000. During February, the actual direct labor cost totaled $160,000, and factory overhead cost incurred totaled $283,900. a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. b. Journalize the entry to apply factory overhead to production for February. If an amount box does not require an entry, leave it blank. c. What is the February 28 balance of the account Factory Overhead-Blending Department? Amount: Debit or Credit? d. Does the balance in part (c) represent overapplied or underapplied factory overhead?

Name: **Factory Overhead Rate, Entry for Applying Factory Overhead, and Fac
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: **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 beg

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Thomlin Company forecasts that total overhead for the current year will be $11,132,000 with 166,000 total machine hours. Year to date, the actual overhead is $7,549,000 and the actual machine hours are 80,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$3,064,600 underapplied b.$2,189,000 overapplied c.$3,064,600 overapplied d.$2,189,000 underapplied
A Company uses a job order costing system and estimated it will have direct materials cost of $86,000 and $100,000 of direct labor cost next year. The company estimates its overhead next year will be $69,000. It also expects to incur 28,600 machine hours. If the company bases applied overhead on machine hours, its predetermined overhead rate for the next period should be (roun your answer to two decimal places): O $1.45/MH. O $0.69/MH. $2.99 per MH. O $2.41 per MH.
Show Me How Applying factory overhead Keenan Company estimates that total factory overhead costs will be $322,000 for the year. Direct labor hours are estimated to be 23,000. a. For Keenan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. $ per direct labor hour b. During May, Keenan Company accumulated 720 hours of direct labor costs on Job 200 and 510 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. $ c. Prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate. If an amount box does not require an entry, leave it blank.
The cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $765,700, and total direct labor costs would be $589,000. During May, the actual direct labor cost totaled $51,000, and factory overhead cost incurred totaled $68,950. A)What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. b) Journalize the entry to apply factory overhead to production for May. Work in Process-Blending Department Factory Overhead-Blending Department C) What is the May 31 balance of the account Factory Overhead—Blending Department? Amount:
Salinger Company estimates that total factory overhead costs will be $78,000 for the year. Direct labor hours are estimated to be 13,000. a. For Salinger Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places b. During August, Salinger Company accumulated 850 hours of direct labor costs on Job 40 and 530 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August. c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $329,900 and direct labor hours would be 43,500. Actual manufacturing overhead costs incurred were $308,200, and actual direct labor hours were 51,900. What is the predetermined factory overhead rate per direct labor hour? a. $6.07 b. $11.38 c. $7.58 d. $9.10
In December, a company was calculating the predetermined factory overhead rate for the upcoming year, based on machine hours, using the following estimated costs: direct materials $ 550,000, direct labor $ 350,000; factory overhead $ 175,000, sales expenses $ 40,000, general and administrative expenses $ 35,000. The following estimates were also available: direct labor hours 500; machine hours 250 Calculate the predetermined overhead rate for the upcoming year. Multiple Choice $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $500 per direct labor hour. $650 per machine hour. $350 per direct labor hour. $1,000 per machine hour. $700 per machine hour.
A company estimated the manufacturing overhead costs for the coming year at $420,00 The total estimated direct labor hours are 15,000 hours, and the estimated machine hou to be worked are 6,000 hours. The company allocates its manufacturing overhead cos based on the direct labor hours. What is the pre-determined overhead allocation rate? a. $20 per direct labor hour b. $70 per machine hour c. $28 per machine hour d. $28 per direct labor hour Answer O A O B OD
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $349,700 and direct labor hours would be 40,000. Actual manufacturing overhead costs incurred were $300,400, and actual direct labor hours were 52,900. What is the predetermined overhead rate per direct labor hour?
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $466,920 and direct labor hours would be 46,692. Actual factory overhead costs incurred were $496,253, and actual direct labor hours were 51,693. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? O $516,930 overapplied Ob. $50,010 underapplied Oc. $20,677 overapplied Od. $20,677 underapplied
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $353,700 and direct labor hours would be 47,300. Actual manufacturing overhead costs incurred were $319,500, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a Oa. debit to Factory Overhead for $391,952 Ob. credit to Factory Overhead for $391,952 Oc. debit to Factory Overhead for $319,500 Od. credit to Factory Overhead for $353,700
Winston Company estimates that total factory overhead for the following year will be $1,050,300. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 38,900 hours. The total machine hours for the year were 54,200. The actual factory overhead for the year was $1,455,000. a. Determine the total factory overhead applied. Round to the nearest dollar. b. Compute the over- or underapplied factory overhead for the year. c. Journalize the entry to transfer the over- or underapplied factory overhead to Cost of Goods Sold. If an amount box does not require an entry, leave it blank.