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Factory Overhead Rates, Entries, and Account Balance

Montenegro Metal Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:

		Factory 1		Factory 2
Estimated factory overhead cost for fiscal
	year beginning March 1	$564,630		$825,000
Estimated direct labor hours for year				15,000
Estimated machine hours for year		19,470
Actual factory overhead costs for March		$45,180		$71,280
Actual direct labor hours for March				1,350
Actual machine hours for March		1,520

Question Content Area

a. Determine the factory overhead rate for Factory 1. $fill in the blank fe0fd1fe3fff07d_1 per machine hour

b. Determine the factory overhead rate for Factory 2. $fill in the blank fe0fd1fe3fff07d_2 per direct labor hour

Question Content Area

c. Journalize the entries to apply factory overhead to production in each factory for March. If an amount box does not require an entry, leave it blank.

Factory 1	Accounts ReceivableCashFactory OverheadMaterialsWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashFactory OverheadWork in Process	- Select -	- Select -
Factory 2	Accounts PayableCashFactory OverheadMaterialsWork in Process	- Select -	- Select -
	Accounts PayableCashFactory OverheadMaterialsWork in Process	- Select -	- Select -

Question Content Area

d. Determine the balances of the factory overhead accounts for each factory as of March 31 and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.

Factory 1	$fill in the blank 060a98045f9c01d_1	CreditDebit	OverappliedUnderapplied
Factory 2	$fill in the blank 060a98045f9c01d_4	CreditDebit	OverappliedUnderapplied

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