Refer to the data in Exercise for Crystal Glassware Company. Prepare journal entries to
• Record the incurrence of actual variable overhead and actual fixed overhead.
• Add variable and fixed overhead to Work in-Process inventory.
• Close under applied or over applied overhead into Cost of Goods Sold.
Crystal Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate ........ $6.00 per direct-labor hour
Standard quantity of direct labor .......... 2 hours per unit of output
Budgeted fixed overhead ........... $100,000
Budgeted output ............... 25,000 units
Actual results for April are as follows:
Actual output ............ 20,000 units
Actual variable overhead ......... $320,000
Actual fixed overhead .......... $97,000
Actual direct labor .......... 50,000 hours