Current Attempt in Progress In its first year of operation, Blossom Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, March 31, overhead was over-applied by $4,100. It has been decided this over-applied overhead is material at the end of the year and the amount should be allocated among work in process 13%, finished goods 28%, and the rest to the cost of goods sold. Prepare the adjusting entry to close out the over-applied overhead. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit
Current Attempt in Progress In its first year of operation, Blossom Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, March 31, overhead was over-applied by $4,100. It has been decided this over-applied overhead is material at the end of the year and the amount should be allocated among work in process 13%, finished goods 28%, and the rest to the cost of goods sold. Prepare the adjusting entry to close out the over-applied overhead. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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