Question 2 CRAZY Co, is a major producer of beauty products. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. The company has a standard of 10 labor hours per unit. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 17,500 labor-hours (the denominator activity level): Variable manufacturing overhead cost . ....$ 175,000 Fixed manufacturing overhead cost . . . .. Total manufacturing overhead cost ........ $595,000 $420,000 During the most recent year, the following operating results were recorded: Activity: Actual Production. . .... Total Actual labor-hours worked . . ... 1,600 15,000 Cost: Actual variable manufacturing overhead cost incurred ..... $156,000 Actual fixed manufacturing overhead cost incurred . . $418,800

Question 2 CRAZY Co, is a major producer of beauty products. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. The company has a standard of 10 labor hours per unit. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 17,500 labor-hours (the denominator activity level): Variable manufacturing overhead cost . ....$ 175,000 Fixed manufacturing overhead cost . . . .. Total manufacturing overhead cost ........ $595,000 $420,000 During the most recent year, the following operating results were recorded: Activity: Actual Production. . .... Total Actual labor-hours worked . . ... 1,600 15,000 Cost: Actual variable manufacturing overhead cost incurred ..... $156,000 Actual fixed manufacturing overhead cost incurred . . $418,800

Name: Q) Prepare journal entries for variable and fixed manufacturing overhe
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Description: Q) Prepare journal entries for variable and fixed manufacturing overhead costs and variances;write off these variances to cost of goods sold. Question 2CRAZY Co, is a major producer of beauty products. The company uses a standard cost system tohelp c

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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