Determine Sheffield's variable$-$MOH price and efficiency variances. Also identify whether the company's variable$-$MOH costs

were under$-$ or overapplied, and by how much.

Variable$-$MOH price variance

Variable$-$MOH efficiency variance

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Solution

List of Accounts

$($b$)$

Record the journal entries to accompany the following transactions for variable$-$ MOH : $(1)$ actual variable$-$ MOH cost incurred

$($consider that half was for utilities not yet paid, and half was for accrued indirect labor$),(2)$ allocation of variable$-$MOH cost to

production, and $(3)$ recognition of specific variable$-$MOH variances $($while closing out the Variable$-$MOH Control account$).($Credit

account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the

account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

$(1)$

$(2)$

$(3)$