The Estimated Total Factory Overhead Cost and Total Machine Hours

question 16

Short Answer

The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250, respectively.  During January, the first month of the current year, actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000.
(a) Determine the factory overhead rate based on machine hours.
(b) Present the entry to apply factory overhead to production in Department 40 for January.
(c) What is the balance of Factory Overhead-Department 40 at January 31?
(d) Does the balance of Factory Overhead-Department 40 at January 31 represent overapplied or underapplied factory overhead?
Round total cost to nearest dollar value.

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Definitions:

Femur

The thigh bone, which is the longest and strongest bone in the human body, connecting the hip to the knee.

Tibia

One of the two large bones in the lower leg, the tibia is situated between the knee and ankle, often referred to as the shin bone.

Fibula

A long, thin bone located on the lateral side of the tibia in the lower leg.

Lateral Condyle

A rounded projection at the end of a bone, typically part of the knee joint, which articulates with another bone.