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Question - Factory overhead rate, entry for applying factory overhead, and factory overhead account balance
The chief cost accountant for Mountain Glade Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning March 1 would be $689,850, and total direct labor costs would be $511,000. During March, the actual direct labor cost totaled $44,000, and factory overhead cost incurred totaled $57,000.
a. What is the predetermined factory overhead rate based on direct labor cost?
b. Journalize the entry to apply factory overhead to production for March.
c. What is the March 31 balance of the account Factory Overhead-Blending Department?
d. Does the balance in part (c) represent overapplied or underapplied factory overhead?
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