The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total fact

Question

The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $160,000, and total direct labor costs would be $100,000. During April, 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 April 30, journalize the entry to apply factory overhead to production. Refer to the Chart of Accounts for exact wording of account titles.

C. What is the April 30 balance of the account Factory Overhead-Blending Department?

D. Does the balance in part (c) represent over- or underapplied factory overhead?

Explanation / Answer

Fizzy Fruit Beverage co details Amt $ Extimated Total Factory overhead                   160,000 Estimated Direct Labor cost                   100,000 a Predetermined Factory Overhead per $ of Direct Labor cost $                     1.60 b Journal Entry for applying Factory OH Date Account Title Dr $ Cr $ 30.04. Factory Overhead Control A/c          21,600 Work In process                       21,600 ( Factory OH applied $$1.6 per direct labor $ for April) c Fcatory Overhead Incurred in April                     21,950 Factory Overhead applied n April                     21,600 Balance in Factory OF on April 30                           350 d The balance in Fcatory Overhead a/c is a debit   balance , so Factory Overhead is underapplied.

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