# (Question and Answer): Factory overhead Rates, Entries, and account Balance. Sundance solar company operates two factories. The company supplies factory ove

Factory overhead Rates, Entries, and account Balance. Sundance solar company operates two factories. The company supplies factory overhead to jobs on the basis of machine hours in factory. 1 and basis of direct labor hours in factory 2. Estimated factory overhead costs, direct labor hours, machine hours are as follows: Determine the factory overhead rate for Factory 1. \$ per machine hour b. Determine the factory overhead rate for factory 2. \$ per direct labor hour c. Journalize the entries to apply factory overhead to production is each factory for March. d. Determine the balance of the factory overhead accounts for each factory as March 31, and indicate whether the represent overhead or under applied factory overhead.

a. Factory overhead rate for Factory 1 = estimated factory overhead/estimated machine hours

Don't use plagiarized sources. Get Your Custom Essay on
(Question and Answer): Factory overhead Rates, Entries, and account Balance. Sundance solar company operates two factories. The company supplies factory ove
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!

= 12,900,000/600,000

= \$21.50 per machine hour

b. Factory overhead rate for Factory 2 = estimated factory overhead/estimated direct labor hours

= 10,200,000/250,000

= \$40.80 per direct labor hour

c. Journal entry for factory 1:

Predetermined rate = \$21.50 per machine hour. Actual machine hours = 610,000. Thus applied overhead = \$21.50*61,000 = \$13,115,000

Journal entry would be:

 Particulars Debit Credit Work in process \$13,115,000 Factory overhead \$13,115,000

Factory 2: overhead applied = \$40.80 per direct labor hour*245,000 actual hours = \$9,996,000

Thus journal entry would be:

 Particulars Debit Credit Work in process \$9,996,000 Factory overhead \$9,996,000

d. Factory 1: actual overheads = 12,990,000. Applied overhead = 13,115,000. Thus applied overhead is greater than actual overhead and so overhead is overapplied. There will be credit balance.

Balance amount for factory 1 = 13,115,000-12,990,000 = \$125,000

Factory 2: actuals = 10,000,000. Applied overhead = 9,996,000. Thus applied overhead is less than actual and so overhead is underapplied. There will be a debit balance.

Balance amount = 10,000,000-9,996,000 = \$4,000

 Factory 1 \$ 125,000.00 Overapplied Factory 2 \$ 4,000.00 Underapplied

Order NOW For a 10% Discount!
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.