Under the immediate write-off approach to overhead

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Reference no: EM13566653

Smith Company applies overhead based on machine hours. The following data was available:

Budgeted factory overhead $266,400

Budgeted machine hours 18,500

Actual factory overhead $287,920

Actual machine hours 19,050

Cost of goods sold $560,000

Direct materials inventory, ending balance $60,000

Work-i n-process inventory, ending balance $190,000

Finished goods inventory, ending balance $250,000 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?

Reference no: EM13566653

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