Scenario II: Goodmark Company produces two types of birthday cards: scented and regular. Goodmark uses the Overhead Control account to accumulate both actual and applied overhead. The company has thc following data for the past Actual overhead $760,000 Sales $3,500,000 Matertals used $1,10n,000 Applied Overhaad (In each account): Work in process $72,000 Finished goods 210,000 Cost of gouds sold 432,000 Required: 1. Calculate the overhead varlance tor the year and label it under- or overapplied. Overhead varlance: 2. Assuming the variance is not materlal, the following clasing entry would be made: Debit v for $ and credit v for $ 3. If the overhead variance is material, indicate how much of the variance would be v to cach of the following accounts (if an amount is zero, enter "0"): Work in process Materlals Cnst of gonds told Sales revenue Finished goods

Scenario II: Goodmark Company produces two types of birthday cards: scented and regular. Goodmark uses the Overhead Control account to accumulate both actual and applied overhead. The company has thc following data for the past Actual overhead $760,000 Sales $3,500,000 Matertals used $1,10n,000 Applied Overhaad (In each account): Work in process $72,000 Finished goods 210,000 Cost of gouds sold 432,000 Required: 1. Calculate the overhead varlance tor the year and label it under- or overapplied. Overhead varlance: 2. Assuming the variance is not materlal, the following clasing entry would be made: Debit v for $ and credit v for $ 3. If the overhead variance is material, indicate how much of the variance would be v to cach of the following accounts (if an amount is zero, enter "0"): Work in process Materlals Cnst of gonds told Sales revenue Finished goods

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Description: Scenario II: Goodmark Company produces two types of birthday cards: scented and regular. Goodmark uses the Overhead Control account to accumulate both actual and applied overhead. The company has thc following data for the pastActual overhead$760,00

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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Cornerstones of Cost Management 4th Ed. - Chapter 4 Scenario II: Goodmark Company produces two types of birthday cards: scented and regular. Goodmark uses the Overhead Control account to accumulate both actual and applied overhead. The company has the following data for the past year: Actual overhead $760,000 Sales $3,500,000 Materials used $1,100,000 Applied Overhead (in each account): Work in process $72,000 Finished goods 216,000 Cost of goods sold 432,000 Required: 1. Calculate the overhead variance for the year and label it under- or overapplied. Overhead variance: $ ________ (underpaid or overpaid) 2. Assuming the variance is not material, the following closing entry would be made: Debit _________ for $___________ and credit _______ for $ __________ 3. If the overhead variance is material, indicate how much of the variance would be __________ to each of the following accounts (if an amount is zero, enter "0"): Work in…
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