The Pukalani Company uses a standard costing system. During 2021, the company incurred actual overhead of $570,300. The standard rate for applying overhead is $4.11 per unit, and 120,900 units were produced in 2021. One-third of the total overhead variance is attributed to the volume variance, and the remainder is attributed to the controllable overhead variance. Prepare the journal entries to record overhead incurred (you should credit "various accounts") and the overhead variances. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

The Pukalani Company uses a standard costing system. During 2021, the company incurred actual overhead of $570,300. The standard rate for applying overhead is $4.11 per unit, and 120,900 units were produced in 2021. One-third of the total overhead variance is attributed to the volume variance, and the remainder is attributed to the controllable overhead variance. Prepare the journal entries to record overhead incurred (you should credit "various accounts") and the overhead variances. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Name: The Pukalani Company uses a standard costing system. During 2021, the
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Description: The Pukalani Company uses a standard costing system. During 2021, the company incurred actual overhead of $570,300. Thestandard rate for applying overhead is $4.11 per unit, and 120,900 units were produced in 2021. One-third of the total overheadvar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

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.

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Question

The Pukalani Company uses a standard costing system. During 2021, the company incurred actual overhead of $570,300. The
standard rate for applying overhead is $4.11 per unit, and 120,900 units were produced in 2021. One-third of the total overhead
variance is attributed to the volume variance, and the remainder is attributed to the controllable overhead variance. Prepare the
journal entries to record overhead incurred (you should credit "various accounts") and the overhead variances. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually.)
No. Account Titles and Explanation
1.
2.
3.
(To record actual overhead incurred)
(To record overhead applied)
(To close manufacturing overhead and record overhead variances)
Debit
|||||||
Credit
11
Acti
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