Winston Company estimates that the factory overhead for the following year will be $943,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 36,300 hours. The total machine hours for the year were 54,500 hours. The actual factory overhead for the year was $1,437,000. Enter the amount as a positive number. a. Determine the total factory overhead amount applied. Round to the nearest dollar. b. Compute the over- or underapplied amount 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 blank.

Winston Company estimates that the factory overhead for the following year will be $943,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 36,300 hours. The total machine hours for the year were 54,500 hours. The actual factory overhead for the year was $1,437,000. Enter the amount as a positive number. a. Determine the total factory overhead amount applied. Round to the nearest dollar. b. Compute the over- or underapplied amount 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 blank.

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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A company estimates its manufacturing overhead will be $617,864 for the next year. What is the predetermined overhead rate if the allocation base is 1,091,428 budgeted direct labor expense? Round to the nearest hundredth, two decimals.
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