Russell Company had the following balances as of December 31, 20X5. Required:
a. Does the variance represent over- or underapplied overhead?
b. Prepare the entry to dispose of the variance using the proration method.
c. What effect, if any, did the entry in part b have on gross profit?

Question

Russell Company had the following balances as of December 31, 20X5.  Required:
a. Does the variance represent over- or underapplied overhead?
b. Prepare the entry to dispose of the variance using the proration method.
c. What effect, if any, did the entry in part b have on gross profit?

Quizplus · Accepted Answer

The Answer of Russell Company had the following balances as of December 31, 20X5.  Required:
a. Does the variance represent over- or underapplied overhead?
b. Prepare the entry to dispose of the variance using the proration method.
c. What effect, if any, did the entry in part b have on gross profit?

Russell Company Had the Following Balances as of December 31