Question
Stanley Company applies overhead based on machine hours. The following data was available: Budgeted factory overhead costs$280,000 Budgeted machine hours20,000 Actual factory overhead costs$292,000 Actual
Stanley Company applies overhead based on machine hours. The following data was available:
Budgeted factory overhead costs$280,000
Budgeted machine hours20,000
Actual factory overhead costs$292,000
Actual machine hours19,050
Cost of goods sold$560,000
Direct materials inventory, ending balance$60,000
Work-in-process inventory, ending balance$190,000
Finished goods inventory, ending balance$250,000
Required:
A) Compute the budgeted factory overhead rate.
B) Compute the underapplied or overapplied factory overhead.
C) Under the immediate write-off approach to overhead variances, how would you dispose of the overhead variance?
D) If the immediate write-off approach to overhead variances is not used, how would you dispose of the overhead variance?
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