The Winston Company Estimates That the Factory Overhead for the Following

question 14

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 were 54,300.The actual factory overhead for the year were $1,348,800.
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(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:

TOF Timer

A type of PLC timer that measures the "Time-Off-Fall" or the time it takes for a signal to turn from on to off.

Retentive

Memory or functions in a control system that retain their value or state even after the system is powered down or rebooted.

Nonretentive

In PLC programming, a term referring to memory or data that is not retained after power loss.