Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rails Inc has calculated the following variances for the past month $ 200 U 300 F 500 F Direct materials price variance Direct materials quantity
Rails Inc has calculated the following variances for the past month $ 200 U 300 F 500 F Direct materials price variance Direct materials quantity variance Direct labour rate variance Direct labour efficiency variance Variable overhead spending variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance 1,500 F 450 U 1.350 F 500 U 275 F Required: 1. Calculate the balance in the manufacturing overhead clearing account and indicate whether it is a debit or credit balance. (2.5 marks) 2. State whether the manufacturing overhead account is under-applied or over-applied. (0.5 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started