Reference no: EM132473814

Muddy Duck Manufacturing (MDM) inc. is a farm machinery company that uses a standard cost system for its machine-based production of grain drying equipment. Data regarding production for April are as follows

Variable manufacturing overhead cost incurred                                          $559,650

Variable manufacturing overhead costs allocation rate                                 $600 per machin hr.

Fixed manufacturing overhead costs incurred                                              $86,500

Fixed manufacturing overhead budgeted                                                     $90,000

Denominator level machine hours                                                                500 hours

Standard machine hours allowed per unit of output                                         15 hours

Units produced                                                                                         65 units

Actual machine-hours used                                                                         910 hours

Ending work-in-process inventory                                                                      nil

Required

Question a. Prepare the necessary journal entries to account for the variable manufacturing overhead incurred and allocated to production

Question b. Prepare the journal entry to close the variable overhead variance accounts under the assumption that the amount is immaterial.