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1 5 - 1 6 Patel and Sons, Inc., uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for
Patel and Sons, Inc., uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as machine hours
per year, which represents units of output. Annual budgeted fixed overhead costs are $ and the budgeted variable overhead cost is $ per unit. Factory
overhead costs are applied on the basis of standard machine hours allowed for the units produced. Budgeted and actual output for the year was units, which took
machine hours. Actual fixed overhead costs for the year amounted to $
while the actual variable overhead cost per unit was $ What was a the fixed overhead
spending variance for the year, and b the overhead production volume variance for the year? Round each answer to nearest whole dollar, and indicate whether each variance
was favorable or unfavorable
Practical capacity in machine hours
Practical capacity in units of output
Annual budgeted fixed overhead costs
Budgeted variable overhead cost per unit
Budgeted output for the year in units
Actual output for the year in units
Actual number of machine hours worked for the year
Actual fixed overhead costs for the year
Actual variable overhead cost per unit
Refer to your answer to Brief Exercises and and to the journal entries made in conjunction with Brief Exercise Given this information, provide the appropriate journal entry to a record the overhead variances for the period thereby closing out the balance in the Factory Overhead account and b close the variance accounts to Cost of Goods Sold CSG at the end of the period.
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