The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the
Question:
The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $147,000, and total direct labor costs would be $105,000. During April, the actual direct labor cost totaled $12,000, and factory overhead cost incurred totaled $17,050.
Required:
A. What is the predetermined factory overhead rate based on direct labor cost?
B. On April 30, journalize the entry to apply factory overhead to production. Refer to the Chart of Accounts for exact wording of account titles.
C. What is the April 30 balance of the account Factory Overhead-Blending Department?
D. Does the balance in part (c) represent over- or under applied factory overhead?
ASSETS
110.................................................Cash
121..............................Accounts Receivable
125..................................Notes Receivable
126................................Interest Receivable
131............................................Materials
141.........Work in Process-Blending Department
142...........Work in Process-Filling Department
151......Factory Overhead-Blending Department
152.........Factory Overhead-Filling Department
161..................................Finished Goods
171..........................................Supplies
172...............................Prepaid Insurance
173...............................Prepaid Expenses
181.............................................Land
191..........................................Factory
192.........Accumulated Depreciation-Factory
LIABILITIES
210............................Accounts Payable
221..............................Utilities Payable
231................................Notes Payable
236...........................Interest Payable
251............................Wages Payable
EQUITY
311...........................Common Stock
340........................Retained Earnings
351.................................Dividends
390........................Income Summary
REVENUE
410.......................................Sales
610........................Interest Revenue
EXPENSES
510.....................Cost of Goods Sold
520...........................Wages Expense
531.........................Selling Expenses
532.......................Insurance Expense
533........................Utilities Expense
534........................Supplies Expense
540...............Administrative Expenses
561.........Depreciation Expense-Factory
590................Miscellaneous Expense
710........................Interest Expense
Step by Step Answer:
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac