Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead

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 April 1 would be $552,500, and total direct labor costs would be $425,000. During April, the actual direct labor cost totaled $37,000, and factory overhead cost incurred totaled $50,000.

a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.

Explanation / Answer

Part A is 130%. It says: Enter your answer as a whole percent not in decimals.

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