Prepare journal entries to record the following production activities. 1. Paid overhead costs (other than indirect materials and indirect labor) of $38,750. 2. Applied overhead at 110% of direct labor costs. Direct labor costs were $75,000. JOURNAL ENTRY WORKSHEET 1. Record overhead costs paid. 2. Record the entry for overhead applied to production.
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.
| Prepare journal entries to record the following production activities. |
| 1. |
Paid |
| 2. | Applied overhead at 110% of direct labor costs. Direct labor costs were $75,000. |
1. Record overhead costs paid.
2. Record the entry for overhead applied to production.
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