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 variable manufacturing overhead incurred and allocated to production.
2. Prepare the journal entry to close the variable overhead variance accounts under the assumption that the amount is immaterial.

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 variable manufacturing overhead incurred and allocated to production.
2. Prepare the journal entry to close the variable overhead variance accounts under the assumption that the amount is immaterial.

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 variable manufacturing overhead incurred and allocated to production.
2. Prepare the journal entry to close the variable overhead variance accounts under the assumption that the amount is immaterial.

The Saskatchewan Division of a Canadian Farm Machinery Company Uses