The Winston Company Estimates That the Factory Overhead for the Following

question 36

Essay

The Winston Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours.The total machine hours for the year was 54,300 hours.The actual factory overhead for the year was $1,375,000.
a Determine the total factory overhead amount applied.
b Calculate the over- or under applied amount for the year.
c Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

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Definitions:

Acidic

Describes substances with a pH less than 7, characterized by a higher concentration of hydrogen ions.

Neutralize

To render something harmless by applying an opposite force or effect, such as neutralizing an acid with a base.

Denature

The process by which a protein loses its three-dimensional structure due to external stress or compounds, affecting its functionality.

Enzyme

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.