Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for
Question:
Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $435,850, and total direct labor costs would be $379,000. During May, the actual direct labor cost totaled $33,000, and factory overhead cost incurred totaled $39,450.
a. What is the predetermined factory overhead rate based on direct labor cost?
b. Journalize the entry to apply factory overhead to production for May.
c. What is the May 31 balance of the account Factory Overhead-Blending Department?
d. Does the balance in part (c) represent overapplied or underapplied factory overhead?
Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac