Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Return to question Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant

image text in transcribed

Return to question Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90 Brief Exercise 15-22 (Static) Prepare the appropriate journal entries to record... [LO 15-3] Based on the information provided above, prepare the appropriate journal entries to record: (a) actual factory overhead costs for the year. (b) the applied factory overhead costs for the year (both variable and fixed), and (c) the total flexible budget variance and the production volume variance for the period. Assume that the company uses a single account, Factory Overhead, to record both actual and applied factory overhead. Also, assume that the only variable overhead cost was electricity and that actual fixed overhead consisted of depreciation of $150,000 and supervisory salaries of $95,000. Finally, assume that both electricity expense and the supervisory salaries expense have been incurred but not yet paide, both are current liabilities) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Transaction Debit Credit No 1 Answer is not complete. General Journal Factory overhead Accumulated depreciation--Factory Salaries payable Utilities payable OOO 2 b Work in process inventory Factory overhead 3 C Total flexible-budget variance Production volume variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

High Performance Cloud Auditing And Applications

Authors: Keesook J. Han, Baek-Young Choi, Sejun Song

1st Edition

1493944355, 978-1493944354

More Books

Students also viewed these Accounting questions