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Problem: The estimated total factory overhead cost and toal machine hours for Department 40 for the current year are $225,000 and 56,250 respectively, During January, the first month of the current year, actual machine hours used totaled 5,100 and facoty overhead cost incurred totaled $19,800
Required:
Question 1: Determine the factory overhead tare base on machine hours
Question 2: Present the entry to apply factory overhead to production in Department 40 for January.
Question 3: What is the balance of Factory overhead- department 40 at Jan. 31
Question 4: Does the balance of Factory Overhead-Department 40 at Jan. 31 represent oversupplied or undersupplied factory overhead?
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