Smith Company applies overhead based on machine hours.The following data was available:
Required:
A)Compute the budgeted factory overhead rate.
B)Compute the underapplied or overapplied factory overhead.
C)Under the immediate write-off approach to overhead variances,how would you dispose of the overhead variance?
D)If the immediate write-off approach to overhead variances is not used,how would you dispose of the overhead variance?

Question

Smith Company applies overhead based on machine hours.The following data was available:
  Required: 
A)Compute the budgeted factory overhead rate. 
B)Compute the underapplied or overapplied factory overhead. 
C)Under the immediate write-off approach to overhead variances,how would you dispose of the overhead variance? 
D)If the immediate write-off approach to overhead variances is not used,how would you dispose of the overhead variance?

Quizplus · Accepted Answer

The Answer of Smith Company applies overhead based on machine hours.The following data was available:
  Required: 
A)Compute the budgeted factory overhead rate. 
B)Compute the underapplied or overapplied factory overhead. 
C)Under the immediate write-off approach to overhead variances,how would you dispose of the overhead variance? 
D)If the immediate write-off approach to overhead variances is not used,how would you dispose of the overhead variance?

Smith Company Applies Overhead Based on Machine Hours