60.1K

Verified Solution

Link Copied!

Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance

The cost accountant for River Rock Beverage Co$.$ estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February $1$ would be $$698,500,$ and total direct labor costs would be $$635,000.$ During February, the actual direct labor cost totaled $$55,000,$ and factory overhead cost incurred totaled $$62,900.$

Question Content Area

a$.$ What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.

fill in the blank $1$ of $1$

$\%$

Feedback Area

Feedback

Identify the activity base for this company. Remember to enter the number as a whole percent not in decimals.

Question Content Area

b$.$ Journalize the entry to apply factory overhead to production for February. If an amount box does not require an entry, leave it blank.

blankAccountDebitCredit

blank

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Feedback Area

Feedback

Recall how the predetermined overhead is applied to departments. How does the applied overhead affect work in process?

Question Content Area

c$.$ What is the February $28$ balance of the account Factory Overhead$$Blending Department?

Amount: fill in the blank $1$ of $1$$

Debit or Credit?

d$.$ Does the balance in part $($c$)$ represent overapplied or underapplied factory overhead?

Answer & Explanation Solved by verified expert

See Answer