The Estimated Total Factory Overhead Cost and Total Machine Hours

question 19

Essay

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.Journalize 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 over- or underapplied factory overhead?
Round total cost to the nearest dollar.

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