Winston Company Estimates That the Factory Overhead for the Following

question 179

Essay

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 were 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 underapplied amount for the year.
(c)Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

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Definitions:

Resonance Stabilized Radical

A radical species whose stability is enhanced by the distribution of its unpaired electron over multiple atoms via resonance.

1-Butene

A simple aliphatic hydrocarbon with the formula C4H8, classified as an alkene due to the presence of a double bond between carbon atoms.

Br Radical

Bromine radical, a highly reactive species with an unpaired electron, resulting from the homolytic cleavage of bromine.

Hydrogen Atom

The simplest type of atom, consisting of one proton in the nucleus and one electron bound to the nucleus.