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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 March 1 would be \$546,000, and total direct labor costs would be \$420,000. During March,
the actual direct labor cost totaled \$36,000, and factory overhead cost incurred totaled \$45,000.

a. What is the predetermined factory overhead rate based on direct labor cost?

b. Journalize the entry to apply factory overhead rate based on direct labor cost?

c. What is the March 31 balance of the account Factory Overhead - Blending Department?

d. Does the balance in part ( c ) represent overapplied or underapplied factory overhead?

#### Solution Summary

The solution explains the calculation and journal entries relating to factory overhead rate

\$2.19