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Category > Management Posted 12 Nov 2017 My Price 7.00

analysis of variances

E8-16 Making journal entries for factory overhead and variances; analysis of variances
The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are $6,000, and variable costs are $12,000. Data for two months follow:
June July
Units produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 21,000
Factory overhead incurred . . . . . . . . . . . . . . . . . . . . . . . . . $17,300 $20,800
For each month, make a single journal entry to charge overhead to Work in Process, to close Factory Overhead, and to record variances. Indicate the types of variances and state whether each is favorable or unfavorable. (Hint: You must first compute the controllable and volume variances.)

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Maurice Tutor
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Status NEW Posted 12 Nov 2017 06:11 PM My Price 7.00

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