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:

Shallow Deposits

Geological accumulations of minerals, sediments or other materials that are located near the surface of the Earth.

Separate the Metal

The process of extracting a metal from its ore or mixture, often involving physical or chemical separation techniques.

Outermost Zone

A term typically referring to the furthest or most remote area within a particular boundary or geographical region.

Metamorphic Rock

Rock formed from the transformation of existing rock types through high pressure, high temperature, or both, without melting into liquid magma.