Linneas Company uses a standard costing system. During 2012,the company incurred actual overhead of $560,000.The standard rate for applying overhead is $3.75 per unit, and 140,000 units were produced in 2012.One-fourth of the total overhead variance is attributed to the volume variance, and the remainder is attributed to the controllable overhead variance. Prepare the journal entries to record overhead incurred (you should credit “various accounts”) and the overhead variances.
Answer to relevant QuestionsBob Stevens is taking Managerial Accounting at State University next term and asked his friend, Summer Adams, who has already taken the course, to explain its focus “Are we going to learn more about balance sheets and ...The variance summary for Bell Computers is as follows:Bell ComputersVariance SummaryFor the Year Ended December 31, 2012Material price variance ........... ($ 4,200) favorableMaterial quantity variance ............ 3,300 ...K&J Web Designs creates Web sites for businesses. K&J has a basic Web site creation package that it offers for a flat fee of $600.This package includes everything that a business would need to have a simple but functional ...Northwest Medical Testing draws blood samples from approximately 2,500 clients each month. The standard time for a technician to draw and prepare a blood sample for testing is 10 minutes. The standard wage rate for ...The company is well known for its quality products—each item is thoroughly tested before it leaves the plant. Workers are highly skilled. The company considers direct labor to be a fixed cost because it does not reduce the ...
Post your question