Overhead Variances and Their Disposal

Warner Company has the following data for the past year:

Actual overhead	$318,500
Applied overhead:
Work-in-process inventory	$68,000
Finished goods inventory	136,000
Cost of goods sold	136,000
Total	$340,000

Warner uses the overhead control account to accumulate both actual and applied overhead.

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.

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. Cash Finished Goods Inventory Inventory Overhead Control Raw Materials