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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.)


Definitions:

Ideological

Relating to or concerned with ideas or ideologies, often in terms of political, social, or economic beliefs.

Norm

A standard or pattern of social behavior that is typical or expected within a specific society or group.

Consumptive Roles

The different behaviors or roles that consumers assume when making purchasing decisions or engaging with products and services.

Rituals

Prescribed practices or ceremonies that are part of a culture or religion, often symbolic in nature.

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