What is the predetermined factory overhead rate

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Question - The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $160,000 and total direct labor costs would be $100,000. During May, the actual direct labor cost totaled $13,500 and factory overhead cost incurred totaled $21,950.

Required -

a. What is the predetermined factory overhead rate based on direct labor cost?

b. On May 31, journalize the entry to apply factory overhead to production. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

c. What is the May 31 balance of the account Factory Overhead-Blending Department?

d. Does the balance in part c represent over- or underapplied factory overhead?

Reference no: EM133019333

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