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:

Progressive Discipline

A approach in human resource management where the seriousness of an employee's misconduct influences the severity of the disciplinary action, starting from mild to more severe measures.

Threat of Temporary Suspension

The possibility or risk of being temporarily removed from a position or duty as a disciplinary measure.

Official Written Warning

A documented notice given by an employer to an employee to address a violation or performance issue.

Interactional Justice

The perception of fairness in interpersonal interactions, especially in terms of how decisions and information are communicated.