Wainwright has budgeted construction overhead for August of $435,000 for fixed costs. Actual costs for the month totaled for $450,000 for fixed. Allocated fixed overhead totaled $430,000. The company tracks each item in an overhead control account before allocations are made to individual jobs. The fixed overhead spending variance for August was $15,000 unfavorable for fixed.
Required:
a.Make journal entries for the actual costs incurred.
b.Make journal entries to record the variances for August.

Question

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The Answer of Wainwright has budgeted construction overhead for August of $435,000 for fixed costs. Actual costs for the month totaled for $450,000 for fixed. Allocated fixed overhead totaled $430,000. The company tracks each item in an overhead control account before allocations are made to individual jobs. The fixed overhead spending variance for August was $15,000 unfavorable for fixed.
Required:
a.Make journal entries for the actual costs incurred.
b.Make journal entries to record the variances for August.

Wainwright Has Budgeted Construction Overhead for August of $435,000 for Fixed