Response to the following problem:
Estmated made for a production department of the automate comapay fo the month of Oct:
Buget factory overhead for worked hour $17360
Estimated direct labor 3100
Factory overhead is applied on the basis of direct labor hours. On Oct 31, the record show:
Acutal overhead $18,625
Applied factory overhead 19,180
Questions:
Prepare the entry or entries to close out the two factory overhead account balances to set up the overapplied or underapplied factory overhead, and to close the balance in under or overapplied factorry overhead to cost of goods sold?