Prorate Under- or Overapplied Overhead: Refer to the information in exercise 7-14 to answer the following questions:

a. What is the amount of the manufacturing overhead variance?

b. Regardless of your computations for exercises 7-14 or 7-15, assume that the current applied overhead in each of the inventory accounts and the Cost of Goods Sold account is as follows:

Prepare a schedule to show the proration of the manufacturing overhead variance.

Transcribed Image Text:

Work in Process Inventory 10% Finished Goods Inventory 25% Cost of Goods Sold 65%