REQUIREMENT:

TAGLISH EXPLNATION THIS TOPIC FOR MY REPORT

3. Recognition of Variances and Close the Variable Overhead Accounts. Journal Entry: Variable Overhead Applied (SH x SVOr) XXX Variable Overhead Efficiency Variance* (AH - SH) x SVOr XXX Variable Overhead Price Variance XXX Variable Overhead (Actual) XXX * AH assumed to exceed SH, thus, resulting to an Unfavorable Efficiency Variance. D. Fixed Factory Overhead The following abbreviations/terms will be used in this illustration. Standard Fixed Overhead Rate - SFOr Budgeted Overhead - BOH 1. Payment/Incurrence of Fixed Overhead Journal Entry: Fixed Overhead (Actual) XXX Various Accounts (e.g., accounts payable, accumulated depreciation, etc.) XXX 2. Application of Fixed Factory Overhead to Production Journal Entry: Work in Process Inventory (SH x SFOr) XXX Fixed Overhead Applied (SH- SFOr) XXX 3. Recognition of Variances and close the Fixed Overhead Accounts Journal Entry: Fixed Overhead Applied XXX Fixed Overhead Price Variance XXX Fixed Overhead Production Volume Variance XXX Fixed Overhead (Actual) XXX