Estimates made for a production department of the Automate Company for the month of October show: Factory overhead is applied on the basis of direct labor hours.On October 31,the records show these actual figures: Prepare the entry or entries to 1)apply factory overhead to production;2)record actual factory overhead incurred assuming all items were purchased from vendors;3)close out the two factory overhead account balances to set up the overapplied or underapplied factory overhead;and 4)to close the balance in under- or overapplied factory overhead to Cost of Goods Sold.

Question

Estimates made for a production department of the Automate Company for the month of October show:  Factory overhead is applied on the basis of direct labor hours.On October 31,the records show these actual figures:  Prepare the entry or entries to 1)apply factory overhead to production;2)record actual factory overhead incurred assuming all items were purchased from vendors;3)close out the two factory overhead account balances to set up the overapplied or underapplied factory overhead;and 4)to close the balance in under- or overapplied factory overhead to Cost of Goods Sold.

Quizplus · Accepted Answer

The Answer of Estimates made for a production department of the Automate Company for the month of October show:  Factory overhead is applied on the basis of direct labor hours.On October 31,the records show these actual figures:  Prepare the entry or entries to 1)apply factory overhead to production;2)record actual factory overhead incurred assuming all items were purchased from vendors;3)close out the two factory overhead account balances to set up the overapplied or underapplied factory overhead;and 4)to close the balance in under- or overapplied factory overhead to Cost of Goods Sold.

Estimates Made for a Production Department of the Automate Company