The chief cost accountant for Sassy Beverage Co estimated that
The chief cost accountant for Sassy Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning June 1 would be $ 97,500, and total direct labor costs would be $ 75,000. During June, the actual direct labor cost totaled $ 6,300, and factory overhead cost incurred totaled $ 8,250.
a. What is the predetermined factory overhead rate based on direct labor cost?
b. Journalize the entry to apply factory overhead to production for June.
c. What is the June 30 balance of the account Factory Overhead—Blending Department?
d. Does the balance in part (c) represent over- or underapplied factory overhead?

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