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The Winston Company estimates that the factory overhead for the following year will be $960,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 34,300 hours. The total machine hours for the year were 54,600 hours. The actual factory overhead for the year was $1,550,000. Enter the amount as a positive number.
Problem a. Determine the total factory overhead amount applied.
Problem b. Calculate the over or underapplied amount for the year.
Problem c. Prepare the journal entry to close factory overhead into Cost of Goods Sold.
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