Question

Dunlap Company produces 3-inch binders at its Killeen plant. The following information is available for the year:
Production:
Budgeted .......................... 100,000 binders
Actual........... 98,000 binders
Standard costs:
Direct labor ......... 5 DLH per binder @ $12 per hour
Variable overhead ........ 5 DLH per binder @ $6 per hour
Actual costs:
Direct labor ......... 47,040 DLH @ $11.90 per hour
Variable overhead........ $282,000

Required
a. Prepare the journal entry to record actual variable overhead costs incurred.
b. Prepare the journal entry to record the application of variable overhead to production.
c. Prepare the journal entry to record the variable overhead spending and efficiency variances.



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  • CreatedFebruary 21, 2014
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