Record the variances and close the overhead accounts

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Reference no: EM132736073

Assume the following:

Actual Variable Overhead$17,000

Allocated Variable Overhead$18,000

Budgeted Variable Overhead$17,500

VOH Spending Variance Variance$1500

FVOH Efficiency Variance$500 U

Prepare the following journal entries:

Problem a. Record Actual Overhead

Problem b. Record Allocated Overhead

Problem c. Record the variances and close the overhead accounts

Problem d. Close the variance accounts

Answer the following questions:

Problem e. Is overhead under or over-applied?

Problem f. Did you increase or decrease COGS in entry (d)? Why does this make sense?

Reference no: EM132736073

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