The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250, respectively. During January, the first month of the current year, actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000. a. Determine the factory overhead rate based on machine hours. Round your answer to two decimal places. per machine hour b. Journalize the entry to apply factory overhead to production in Department 40 for January. Use the rate calculated in part (a). If an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar. c. What is the balance of Factory Overhead-Department 40 at January 31? d. Does the balance of Factory Overhead-Department 40 at January 31 represent over- or underapplied factory overhead?

The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250, respectively. During January, the first month of the current year, actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000. a. Determine the factory overhead rate based on machine hours. Round your answer to two decimal places. per machine hour b. Journalize the entry to apply factory overhead to production in Department 40 for January. Use the rate calculated in part (a). If an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar. c. What is the balance of Factory Overhead-Department 40 at January 31? d. Does the balance of Factory Overhead-Department 40 at January 31 represent over- or underapplied factory overhead?

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Description: The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250, respectively. During January, the first month of the current year, actual machine hours usedtotaled 5,100 and factory o

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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