Use the following information to answer the five questions in the quiz: The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $250,000 and 56,250 respectively. During January, the first month of the current year, actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $22,000.
1. Determine the factory overhead rate based on machine hours: (Points : 3)
a. $4.44 per machine hour
b $2.25 per machine hour
c $4.31 per machine hour
d $4.76 per machine hour
2.In the journal entry to apply factory overhead to production in Department 40 for January, we would have the following entry: (Points : 3)
a. Work in Process”Department 40 $21,981 Debit
b. Work in Process”Department 40 $21,981 Credit
c. Work in Process”Department 40 $22,644 Debit
d. Work in Process”Department 40 $22,644 Credit
3. In the journal entry to apply factory overhead to production in Department 40 for January, we would have the following entry: (Points : 3)
a. Factory Overhead”Department 40 $21,981 Debit
b. Factory Overhead”Department 40 $21,981 Credit
c. Factory Overhead”Department 40 $22,644 Debit
d. Factory Overhead”Department 40 $22,644 Credit
4. What is the balance of Factory Overhead”Department 40 at January 31? (Points : 3)
a. $644 Debit
b. $644 Credit
c. $22,644 Debit
d. $22,644 Credit
5. Does the balance of Factory Overhead”Department 40 at January 31 represent overapplied or underapplied factory overhead? (Points : 3)
a. Overapplied factory overhead
b. Underapplied factory overhead
c. Cannot determine with information given
d. neither