(Variances and cost control) Cowher Dimension applies overhead using ma¬ chine hours. The total overhead application rate is $40 per hour based on a normal monthly capacity of 24,000 machine hours. Overhead is 30 percent variable and 70 percent fixed. Each unit of product requires 12 machine hours.

During September, Cowher Dimension produced 2,300 units of product and incurred 25,000 machine hours. Actual overhead cost for September was $1,000,000.

a. What number of standard hours was allowed for September?

b. What is total annual budgeted fixed overhead cost?

c. What is the controllable overhead variance?

d. What is the noncontrollable overhead variance?
24.mmal entries) Dungy Chemical had the following balances in its trial bal¬ ance at year-end.

Assume that taken together, the variances, are believed to be significant. Prepare the journal entries to close the variances at year-end.LO.1

Transcribed Image Text:

Debit Credit Direct Material Inventory Work in Process Inventory Finished Goods Inventory $ 36,600 43,920 65,880 Cost of Goods Sold 585,600 Material Price Variance 7,250 Material Quantity Variance $10,965 Labor Rate Variance 1,100 Labor Efficiency Variance 4,390 VOH Spending Variance 3,600 VOH Efficiency Variance 300 FOH Spending Variance 650 Volume Variance 1,475