Reference no: EM132428725

Question -

Part 1) Bravo Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $250,000 and direct labor hours of 50,000. During the month of February 2017, Job A-1 incurred direct labor of 800 hours. Use this information to make an example of the end of the month application General Journal entry (without explanation) of factory overhead for Job A-1 for the month. If no entry is required then write "No Entry Required."

Part 2) Bravo Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $270,000 and direct labor hours of 30,000. During the month of February 2017, Job A-1 incurred direct labor of 800 hours. Use this information to make an example of the end of the month application General Journal entry (without explanation) of factory overhead for Job A-1 for the month. If no entry is required then write "No Entry Required."

Part 3) On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary $7,000

Factory Utilities 2,000

Machinery Deprecation 11,000

Machinery Repairs 2,500

Factory Insurance (prepaid) 1,000

The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to make an example of the March 31 General Journal entry to record the factory overhead costs. (round any final dollar answers to the nearest whole dollar):

Part 4) On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary $6,000

Factory Utilities 2,500

Machinery Deprecation 10,000

Machinery Repairs 2,000

Factory Insurance (prepaid) 1,000

The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to make an example of the March 31 General Journal entries for the: (round any final dollar answers to the nearest whole dollar):

1. Allocation of factory overhead to Job Order A-2.

2. Allocation of factory overhead to Job Order A-3.

Part 5) On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary $6,000

Factory Utilities 2,500

Machinery Deprecation 10,000

Machinery Repairs 2,000

Factory Insurance (prepaid) 1,000

The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to make an example of the March 31 General Journal entry for the adjusting entry to dispose of any over or under application of factory overhead. (round any final dollar answers to the nearest whole dollar).