The cost accountant estimated total factory overhead costs for the blending department would be $722,200 and total direct labor costs would be $628,000, resulting in a predetermined overhead rate of 115% based on direct labor costs. For February, actual direct labor was $54,000 and overhead incurred was $64,600. The journal entry to apply overhead would debit Work in Process for $62,100 and credit Factory Overhead for $64,600, leaving an underapplied balance of $2,500 in the Factory Overhead account.

1. Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account
Balance The cost accountant for River Rock Beverage Co, estimated that total factory overhead
cost for the Biending Department for the coming fiscal year beginning February 1 would be $722
, 200 , and total direct labor costs would be $628 , 000 . During February, the actual direct labor
cost totaled $54 , 000 , and factory overhead cost incurred totaled $64 , 600 . a. What is the
predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole
percent not in decimals. b. Journalize the entry to apply factory overhead to production for
February. c. What is the February 28 balance of the account Factory Overhead-Blending
Department? d. Does the baiance in part (c) represent overapplied or underapplied factory
overhead?