Klink Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $295,400 and budgeted machine-hours were 21,100. Actual factory overhead was $319,800 and actual machine-hours were 18,090. Before disposition of under/overallocated overhead, the following information was available: Account Overhead Balance Allocated $nil Direct materials $50,000 WIP $160,000 $49,500 Finished goods $220,000 $70,000 Cost of goods sold $510,000 $173,900 Required: a. Determine the budgeted factory overhead rate per machine-hour. b. Compute the over/underallocated overhead. C. Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. The corporation uses Manufacturing Overhead Allocated and Manufacturing Overhead control accounts. ariance usinge the proration approach.

Klink Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $295,400 and budgeted machine-hours were 21,100. Actual factory overhead was $319,800 and actual machine-hours were 18,090. Before disposition of under/overallocated overhead, the following information was available: Account Overhead Balance Allocated $nil Direct materials $50,000 WIP $160,000 $49,500 Finished goods $220,000 $70,000 Cost of goods sold $510,000 $173,900 Required: a. Determine the budgeted factory overhead rate per machine-hour. b. Compute the over/underallocated overhead. C. Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. The corporation uses Manufacturing Overhead Allocated and Manufacturing Overhead control accounts. ariance usinge the proration approach.

Name: Klink Corporation applies overhead based upon machine-hours. Budgeted
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Description: Klink Corporation applies overhead based upon machine-hours. Budgeted factory overheadwas $295,400 and budgeted machine-hours were 21,100. Actual factory overhead was $319.800and actual machine-hours were 18,090. Before disposition of under/overallo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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