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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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