Atlace Manufacturers uses a standard costing system. The T-account for overhead is shown below: In addition to the above, Atlace calculated the following overhead variances:
Variable overhead Cost variance: $5,000 F
Variable overhead Efficiency variance: $4,850 U
Fixed overhead Cost variance: $1,200 F
Fixed overhead Volume variance: $3,350 U
Give journal entry to close the overhead account and record the overhead variances.

Question

Atlace Manufacturers uses a standard costing system. The T-account for overhead is shown below:  In addition to the above, Atlace calculated the following overhead variances:
Variable overhead Cost variance: $5,000 F
Variable overhead Efficiency variance: $4,850 U
Fixed overhead Cost variance: $1,200 F
Fixed overhead Volume variance: $3,350 U
Give journal entry to close the overhead account and record the overhead variances.

Quizplus · Accepted Answer

The Answer of Atlace Manufacturers uses a standard costing system. The T-account for overhead is shown below:  In addition to the above, Atlace calculated the following overhead variances:
Variable overhead Cost variance: $5,000 F
Variable overhead Efficiency variance: $4,850 U
Fixed overhead Cost variance: $1,200 F
Fixed overhead Volume variance: $3,350 U
Give journal entry to close the overhead account and record the overhead variances.

Atlace Manufacturers Uses a Standard Costing System