Factory overhead It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation. Applied factory overhead The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate. the factory overhead rate for Factory 1.

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Answer 1

Question

Chapter 2, Problem 9E

(a)

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

Applied factory overhead

The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.

the factory overhead rate for Factory 1.

(b)

To determine

the factory overhead rate for Factory 2.

(c)

To determine

To record: Journal entry the factory overhead applied in the books of T Industries.

(d)

To determine

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

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The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and expenses for the year are as follows: Accounts payable $108,000 Miscellaneous expense $19,500 Accounts receivable 539,000 Rent expense 56,000 Cash 200,000 Supplies 6,000 Common stock 575,000 Supplies expense 12,700 Fees earned 940,000 Land 1,500,000 Utilities expense Wages expense 34,800 415,000 Common stock was $525,000 and retained earnings was $1,250,000 as of January 1, 20Y5. During the year, additional common stock of $50,000 was issued for cash, and dividends of $90,000 were paid. Required: 1. Prepare an income statement for the year ended December 31, 20Y5. Refer to the lists of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If there is a net loss, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the income statement. 2. Prepare a statement…

Answer 2

Question

Chapter 2, Problem 9E

(a)

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

Applied factory overhead

The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.

the factory overhead rate for Factory 1.

(b)

To determine

the factory overhead rate for Factory 2.

(c)

To determine

To record: Journal entry the factory overhead applied in the books of T Industries.

(d)

To determine

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

Expert Solution & Answer

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Answer 3

Question

Chapter 2, Problem 9E

(a)

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

Applied factory overhead

The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.

the factory overhead rate for Factory 1.

(b)

To determine

the factory overhead rate for Factory 2.

(c)

To determine

To record: Journal entry the factory overhead applied in the books of T Industries.

(d)

To determine

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 9E

(a)

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

Applied factory overhead

The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.

the factory overhead rate for Factory 1.

(b)

To determine

the factory overhead rate for Factory 2.

(c)

To determine

To record: Journal entry the factory overhead applied in the books of T Industries.

(d)

To determine

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 9E

(a)

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

Applied factory overhead

The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.

the factory overhead rate for Factory 1.

(b)

To determine

the factory overhead rate for Factory 2.

(c)

To determine

To record: Journal entry the factory overhead applied in the books of T Industries.

(d)

To determine

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

Answer 6

Chapter 2, Problem 9E

(a)

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

Applied factory overhead

The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.

the factory overhead rate for Factory 1.

Answer 7

Chapter 2, Problem 9E

(a)

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

Applied factory overhead

The company applies factory overhead using predetermined factory overhead rate. The factory overhead applied is recorded in each job sheet which consists of direct labor hour and predetermined overhead rate.

the factory overhead rate for Factory 1.

Answer 8

(b)

To determine

the factory overhead rate for Factory 2.

Answer 9

(b)

To determine

the factory overhead rate for Factory 2.

Answer 10

(c)

To determine

To record: Journal entry the factory overhead applied in the books of T Industries.

Answer 11

(c)

To determine

To record: Journal entry the factory overhead applied in the books of T Industries.

Answer 12

(d)

To determine

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

Answer 13

(d)

To determine

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 2 - A. Name two principal types of cost accounting...Ch. 2 - What kind of firm would use a job order cost...Ch. 2 - Which account is used in the job order cost system...Ch. 2 - What document is the source for (A) debiting the...Ch. 2 - What is a job cost sheet?Ch. 2 - Prob. 6DQ Ch. 2 - Discuss how the predetermined factory overhead...Ch. 2 - A. How is a predetermined factory overhead rate...Ch. 2 - Prob. 9DQ Ch. 2 - Describe how a job order cost system can be used...

Solution Summary: The author explains the factory overhead rate for factory 1 and factory 2 and how it is applied to jobs.

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the factory overhead rate for Factory 2.

To record: Journal entry the factory overhead applied in the books of T Industries.

The balance of factory overhead accounts for each factory as of March 31 & indicates under or over-applied factory overhead.

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Chapter 2 Solutions