Question

Determine: SHOW ALL WORK a. Predetermined factory overhead rate. $ b. Determine the factory overhead applied assume the actual direct labor hours for Job 50 was. 20000 and for J0b 51 was 24000 . $ c. Determine the balance in the factory overhead account assuming that the actual cost

Answer 1

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a. Predetermined factory overhead rate = Estimated factory overhead cost / Direct labr hours

Predetermined factory overhead rate = $1,750,000 / 500,000 hours

Predetermined factory overhead rate = $3.50 per direct labor hours

b. Particulars Amount

Job 50 (20,000*3.50) $70,000

Job 51 (24,000*3.50) $84,000

Factory overhead applied $154,000

c. Balance in factory overhead = $154,000 - $153,000

Balance in factory overhead = $1,000

d. Over-applied factory overhead = $1,000