Reference no: EM132542850

Klink Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $295,400 and budgeted machine-hours were 21,100. Actual factory overhead was $319,800 and actual machine-hours were 18,090. Before disposition of under/overallocated overhead, the following information was available

Required:

Question 1: Determine the budgeted factory overhead rate per machine-hour.

Question 2: Compute the over/underallocated overhead.

Question 3: ?Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. The corporation uses Manufacturing Overhead Allocated and Manufacturing Overhead control accounts.

Question 4: ?Prepare the journal entry to dispose of the variance using the proration approach.

Question 5: Identify three value chain categories and provide an example for each on how Klink Corporation could reduce its indirect costs.