
Concept explainers
(a)
Factory
It includes all manufacturing costs except direct material cost and direct labor cost.
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)
the factory overhead rate for Factory 2.
(c)
To record:
(d)
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
Bundle: Managerial Accounting, 14th + Cengagenowv2, 1 Term Printed Access Card
- no aiOne company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno ai An asset's useful life is the same as its physical life? True Falsearrow_forwardno ai Depreciation Expense reflects an allocation of an asset's original cost rather than an allocation based on the economic value that is being consumed. True Falsearrow_forward
- The purpose of depreciation is to have the balance sheet report the current value of an asset. True Falsearrow_forwardDepreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return. True Falsearrow_forwardDont use AI Give soln.arrow_forward
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