A company applies overhead at a rate of 200% of direct labor cost. Actual overhead cost for the current period is $1,291,100, and direct labor cost is $636,000. 1. Compute the under- or overapplied overhead. 2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the under- or overapplied overhead. Total actual overhead cost Total applied overhead cost Ares 1 Required 2 >
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![1. Compute the under- or overapplied overhead.
2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold.
View transaction list
Journal entry worksheet
A
Record the entry to close over- or underapplied overhead.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567e3a3e-d0fb-49e0-903a-334d72aa92be%2Faff2a681-dda6-44eb-8db8-0a17f67fefd9%2Fzfcriei_processed.jpeg&w=3840&q=75)
![A company applies overhead at a rate of 200% of direct labor cost. Actual overhead cost for the current period is $1,291,100, and direct
labor cost is $636,000.
1. Compute the under- or overapplied overhead.
2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the under- or overapplied overhead.
Total actual overhead cost
Total applied overhead cost
Figures
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567e3a3e-d0fb-49e0-903a-334d72aa92be%2Faff2a681-dda6-44eb-8db8-0a17f67fefd9%2Fni3qw14_processed.jpeg&w=3840&q=75)
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