Marshall Corp End of Year Balances Are as Follows Required:
A

Marshall Corp. uses a budgeted factory- overhead rate to apply overhead to production. The following data are available for the year: $\begin{array}{ll}\text { Budgeted factory overhead } & \$ 675,000 \\\text { Actual factory ow erhead } & \$ 726,000 \\\text { Budgeted direct-labor costs } & \$ 450,000 \\\text { Actual direct- lab or costs } & \$ 482,000\end{array}$
End of year balances are as follows: $$\begin{array} { l l } \text { Materials inventory } & \$ 120,000 \\\text { WIP inventory } & \$ 100,000 \\\text { Cost of goods sold } & \$ 150,000 \\\text { Finished goods inventory } & \$ 250,000\end{array}$$ Required:
a. Determine the budgeted factory- overhead rate based on direct- labor costs.
b. What is the applied overhead based on direct- labor costs?
c. What is the overhead variance?
d. Prorate the overhead variance to the appropriate accounts.