Hudson Company operates two factories. The company applies factory overhead costs to jobs based on machine hours
Fantastic news! We've Found the answer you've been seeking!
Question:
Hudson Company operates two factories. The company applies factory overhead costs to jobs based on machine hours at Factory 1 and on the basis of direct labor hours at Factory 2. Estimated factory overhead costs, factory overhead hours, Direct labor and machine hours are as follows:
Factory 1 | Factory 2 | ||||
Estimated factory overhead cost for the fiscal year | |||||
year beginning June 1 | $ 534,650 | $ 900,000 | |||
Estimated direct labor hours for the year | 12,500 | ||||
Estimated machine hours per year | 14,450 | ||||
Actual factory overhead costs for June | $42,860 | $78,110 | |||
Actual direct labor hours for June | 1,130 | ||||
Actual Machine Hours for June | 1,130 |
- a. Determine the factory overhead rate for Factory 1.
b. Determine the factory overhead rate for Factory 2. - C. Journalize entries to apply factory overhead to production at each factory for June.
- d. Determine the factory overhead account balances for each factory as of June 30, and indicate whether the amounts represent over-applied factory overhead or under-applied factory overhead.
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
Posted Date: