Solutions Inc. manufactures metal office cabinets. The company's single production plant consists of the Cutting, Assembly, and Finishing Departments. The company uses departmental rates for applying factory overhead to production and maintains separate factory overhead control and applied factory overhead accounts for each of the three production departments.
The following predetermined departmental overhead rates were calculated for the fiscal year ending May 31, 20B.
DepartmentRate
Cutting ..................... $2.40 per machine hour
Assembly ...................5.00 per direct labor hour
Finishing ...................1.60 per direct labor hour
Information regarding actual operations of the plant for the 6 months ended November 30, 20A is as follows:


Based on this experience and updated projections for the last 6 months of the fiscal year, the company revised its operating budget. Projected data regarding factory overhead and operating activity for each department for the 6 months ending May 31, 20B, are as follows:


Diane Potter, the controller, plans to develop revised departmental overhead rates that will be more representative of efficient operations for the current fiscal year ending May 31, 20B. She has decided to combine the actual results for the first 6 months of the fiscal year with the projections for the next 6 months to develop the revised departmental application rates. She then plans to adjust the applied factory overhead accounts for each department through November of the year 20A to recognize the revised application rates. The analysis that follows was prepared by Potter from general ledger account balances as of November 30, 20A.


Required:
(1) Determine the balance of the applied factory overhead accounts as of November 30, 20A, before any revision for the following departments:
(a) Cutting
(b) Assembly
(c) Finishing
(2) Calculate the revised departmental overhead rates that the company should use for the remainder of the fiscal year ending May 31, 20B.
(3) Prepare an analysis that shows how the applied factory overhead account for each production department should be adjusted as of November 30, 20A, and prepare the adjusting entry to correct all general ledger accounts that are affected.