Atlas Corp. had $390,000 of actual factory overhead and $355,000 of applied overhead. Their Direct Material, WIP, Finished Goods, COGS, and Gross Profit had the following balances: $400,000, $200,000, $300,000, $500,000 and $250,000 respectively.

-Use the pro-rated methodology to dispose of the variance.

- What is the adjusted COGS and gross profit after accounting for the variance.

Answer rating: 100% (QA)

Calculation of Under applied overheads actual factory overhead appli... View the full answer