Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead Applied overhead: $271,000 Work-in-process inventory Finished goods inventory Cost of goods sold Total $60,000 120,000 120,000 $300,000 Warner uses the overhead control account to accumulate both actual and applied overhead Required: 1. Calculate the overhead variance for the year 29,000 V Overapplied Feedback Check My Work Correct Provide the appropriate adjusting journal entry to close the overhead variance to Cost of Goods Sold. Overhead Control V 29,000 Cost of Goods Sold v 29,000 V Feedback 7 Check My Work Actual OH-Applied OH Over/Underapplied. If variance is not material, it is closed out to cost of goods sold. 2. Assume the variance calculated is material. After prorating, close the variances to the appropriate accounts. If an amount box does not require an entry, leave it blank. Overhead Control 29,000 Cost of Goods Sold 11,600 5,800 11.,600 Inventory Finished Goods Inventory Assume the variance calculated is material. After prorating, provide the final ending balances of these accounts. Unadjusted Prorated Overapplied Adjusted Balance 54,200 108,400 108,400 Balance Overhead 5,800v 11,600 v 11,600) Work-in-Process Inventory $120 000 s(