Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $441,560 $750,000 Estimated direct labor hours for year 12,500 Estimated machine hours for year 23,240 Actual factory overhead costs for August $35,250 $65,090 Actual direct labor hours for August 1,130 Actual machine hours for August 1,810 a. Determine the factory overhead rate for Factory 1. $fill in the blank 2c6e52030040069_1 per machine hour b. Determine the factory overhead rate for Factory 2. $fill in the blank 2c6e52030040069_2 per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for August. If an amount box does not require an entry, leave it blank. Factory 1 - Select - - Select - - Select - - Select - Factory 2 - Select - - Select - - Select - - Select - d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1 $fill in the blank f61631068065f86_1 Factory 2 $fill in the blank f61631068065f86_4

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 9E: Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the...

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Factory Overhead Rates, Entries, and Account Balance

Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:

	Factory 1	Factory 2
Estimated factory overhead cost for fiscal
	year beginning August 1	$441,560		$750,000
Estimated direct labor hours for year		12,500
Estimated machine hours for year	23,240
Actual factory overhead costs for August	$35,250		$65,090
Actual direct labor hours for August		1,130
Actual machine hours for August	1,810

a. Determine the factory overhead rate for Factory 1.
$fill in the blank 2c6e52030040069_1 per machine hour

b. Determine the factory overhead rate for Factory 2.
$fill in the blank 2c6e52030040069_2 per direct labor hour

c. Journalize the entries to apply factory overhead to production in each factory for August. If an amount box does not require an entry, leave it blank.

Factory 1	- Select -	- Select -
	- Select -	- Select -
Factory 2	- Select -	- Select -
	- Select -	- Select -

d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.