Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead $470.000 Applied overhead: Work in process inventory Finished goods invertory $100,000 200,000 200.000 Cost of goods sold Total $500,000 Werner uses the overhead control account to accumulate both actual and applied overhead, Required: 1. Calculate the overhead variance for the year. $ 30,000 Overapplied Tech Chuck No Want Correct Pravide the appropriate adjusting journal entry ta close the overhead variance to Cost of Goods Sold. Overhead Control 300 Cost of Goods Sold 90,000 Fudbeck Check Ny Actual OH - Applied OH - Over/Underapplied. If variance is not material, it is closed out to cost of goods sald. 2. Assume the variance cakulated in material. After prarating, close the variants to the appropriate accounts. If an amount box does not require an entry, leave it blank. Overhead Control 30,000 Work-in-Process Inventory 6.000 Finished Goods Inventory 12.000 Cast of Goods Sold 12.00 Assume the variance calculated is material. After prorating, provide the final ending balances of these accounts. Prorated Overapplied Adjusted Unadjusted Balance Overhead Balance Work-in-Process Inventory $100,000 6,000 $ 94,000 Finished Goods Inventory $200,000 $ 12,000 188,000 Cost of Goods Sold $200,000 12,000 188,000 Feedback Check My Work If variance is material, it is prorated among Work in Process, Finished Goods, and Cost of Goods Sold. 3. What if the variance is of the opposite sign calculated in Requirement 1? Provide the appropriate adjusting journal entries for Requirements 1 and 2. For a compound transaction, if an amount box does not require an entry, leave it blank. Variance immaterial Variance material Feedback