Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead $222,000 Applied overhead: Work-in-process inventory $52,000 Finished goods inventory 104,000 Cost of goods sold 104,000 Total $260,000 Warner uses the overhead control account to accumulate both actual and applied overhead. Required: 1. Calculate the overhead variance for the year. 38,000 Overapplied Feedback Provide the appropriate adjusting journal entry to close the overhead variance to Cost of Goods Sold. Overhead Control 38,000 Cost of Goods Sold 38,000 Feedback 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 38.000 Cost of Goods Sold Work-in-Process Inventory Finished Goods Inventory Feedback Assume the variance calculated is material. After prorating, provide the final ending balances of these accounts. Adjusted Unadjusted Balance Prorated Overapplied Overhead Balance Work-in-Process Inventory $52,000 Finished Goods Inventory $104,000 Cost of Goods Sold $104,000 $ Feedback 3. What if the variance 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 Cost of Goods Sold Overhead Control Variance material Cost of Goods Sold I lill Work-in-Process Inventory Finished Goods Inventory Overhead Control Feedback Feedback