Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For November 2020, Lundgren Ltd. allocated $260,000 in variable manufacturing overhead (VMOH) costs and $440,000 of fixed manufacturing overhead (FMOH) costs. The actual costs for

For November 2020, Lundgren Ltd. allocated $260,000 in variable manufacturing overhead (VMOH) costs and $440,000 of fixed manufacturing overhead (FMOH) costs. The actual costs for the month were $275,000 for VMOH and $445,000 for FMOH. The company tracks each item in an overhead control account before allocations are made to individual jobs.

The VMOH rate variance for August was $10,000 unfavorable and the FMOH spending variance was $10,000 unfavorable. The FMOH production-volume variance was $5,000 favorable.

The VMOH efficiency variance amount is a mystery and unknown at this time. (HINT: you will need to solve this mystery in order to answer part b).

Required:

a. Prepare the journal entries for the actual costs incurred.

b. Prepare the journal entry to close the VMOH accounts and record the VMOH variances for August.

c. Prepare the journal entry to close the FMOH accounts and record the FMOH variances for August.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

More Books

Students also viewed these Accounting questions

Question

=+1. What is a stakeholder? Define the term in your own words.

Answered: 1 week ago