Danden Manufacturing Company provides the following data concerning its operations for the year ended December 31, 19X1:

Required:

a. Compute the amount of overhead applied during the year and prepare the summary journal entry required to record this on the books.

b. Determine the amount of the over- or underapplied overhead.

c. Compute the factory overhead spending and volume variances.

d. Prepare the journal entries required to journalize the variances and to close the Factory Overhead Control account; close variance to the Cost of Goods Sold account.

Transcribed Image Text:

Estimated variable overhead rate per machine-hour Estimated total overhead rate per machine-hour $2.50 Budgeted capacity Actual capacity during year Actual factory overhead costs $6.00 15,000 machine-hours 15,200 machine-hours $96,000