The Saskatchewan division of a Canadian farm machinery company uses a standard cost system for its machine-based production of grain drying equipment. Data regarding production for April are as follows:

Required:
1. Prepare the necessary journal entries to account for the fixed manufacturing overhead incurred and allocated to production.
2. Prepare the journal entry to close the fixed overhead variance accounts assuming that the fluctuation in denominator level is considered to be normal.

Question

The Saskatchewan division of a Canadian farm machinery company uses a standard cost system for its machine-based production of grain drying equipment. Data regarding production for April are as follows:
 
Required:
1. Prepare the necessary journal entries to account for the fixed manufacturing overhead incurred and allocated to production.
2. Prepare the journal entry to close the fixed overhead variance accounts assuming that the fluctuation in denominator level is considered to be normal.

Quizplus · Accepted Answer

The Answer of The Saskatchewan division of a Canadian farm machinery company uses a standard cost system for its machine-based production of grain drying equipment. Data regarding production for April are as follows:
 
Required:
1. Prepare the necessary journal entries to account for the fixed manufacturing overhead incurred and allocated to production.
2. Prepare the journal entry to close the fixed overhead variance accounts assuming that the fluctuation in denominator level is considered to be normal.

The Saskatchewan Division of a Canadian Farm Machinery Company Uses