The following information relates to Joplin Company for the period just ended: Standard Variable overhead rate per
Question:
The following information relates to Joplin Company for the period just ended:
Standard
Variable overhead rate per hr: $1
Standard Fixed overhead rate per hr: $2
Planned monthly activity: 40,000 machine hours
Actual Production Completed: 82,000 units
Standard Machine Processing Rate: two units per hour
Actual Variable Overhead: $37,000
Actual Total Overhead: $121,000
Actual Machine Hours Worked: 40,500
The company uses machine hours to apply variable and fixed overhead.
Required:
A. Calculate the variable overhead variances and the fixed overhead variances.
B. Record the journal entries when the variances are recognized.
C. Record the journal entries when the variances are disposed at the end of the period.
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Olds