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. Based on the information provided above, provide the appropriate journal entries. Record the entry to close the variance accounts to cost of goods sold.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) debit credit cost of goods sold 43,000 variable overhead spending variance ? fixed overhead spending ?
Patel and Sons Incorporated uses a
Based on the information provided above, provide the appropriate journal entries. Record the entry to close the variance accounts to cost of goods sold.(If no entry is required for a transaction/event, select "No
debit credit
cost of goods sold 43,000
variable overhead spending variance ?
fixed overhead spending ?
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