Bluetop Company Uses a Standard Cost System

question 35

Essay

Bluetop Company uses a standard cost system. For the month of April, the firm budgeted $160,000 for total factory overhead based on 40,000 machine hours. The standard calls for 4.0 machine hours for each finished unit. During April, the firm used 39,000 machine hours to manufacture 9,500 units, and incurred $159,000 in total factory overhead.
Required:
1. Determine (to the nearest whole dollar) the total amount of standard factory overhead cost charged to production in April.
2. Provide the correct journal entry to record the application of standard factory overhead costs to production. (Assume that the company uses a single overhead account, Manufacturing Overhead.)

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Definitions:

Butterfly Collection System

A type of IV needle system used for drawing blood that has a thin, needle-like tube connected to a winged end, making the insertion easier and minimizing discomfort for the patient.

Gauge Needle

A tool used in medical injections and samplings, with the gauge number indicating the needle’s thickness; a higher number represents a thinner needle.

Disposable Instrument

Tools and devices designed for single use in medical procedures to ensure sterility and prevent cross-contamination.

Manual Differential Cell Count

A laboratory method used to quantify and categorize different types of white blood cells in a blood sample.