The company closes all variances to cost of goods sold. Required:
(1) Compute the four variances for a four-way analysis.
(2) Prepare all necessary journal entries to close overhead into cost of goods sold. Keep the entries for fixed and variable items separate.
Atherton Company uses a four-way analysis for overhead. The following information is available for August for overhead:

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The Answer of The company closes all variances to cost of goods sold. Required:
(1) Compute the four variances for a four-way analysis.
(2) Prepare all necessary journal entries to close overhead into cost of goods sold. Keep the entries for fixed and variable items separate.
Atherton Company uses a four-way analysis for overhead. The following information is available for August for overhead:

The Company Closes All Variances to Cost of Goods Sold