Prepare the journal entries that the company would make to record and close out the variances.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 17, Problem 40P

a.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

a.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Cost of Goods Sold			14,000
	(To close overhead cost variances to Cost of Goods Sold)

Table (1)

Working notes (1): Variable costs:

Actual Costs	Spending Variance	Actual Inputs at Standard Price	Efficiency Variance	Flexible Budget (Standard Inputs Allowed for Good Output)
$132,000		$122,000 ($126,000 – $4,000)		$126,000

	$10,000 U ( $132,000 – $122,000)		$4,000 F

Figure (1)

Working notes (1): Fixed costs:

Actual Costs	Price Variance	Budget	Production Volume Variance	Applied
$180,000		$190,000		$200,000

	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)
	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)

Figure (2)

b.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

b.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Finished Goods Inventory ($14,000×5100)			700
	Cost of Goods Sold ($14,000×95100)			13,300
	(To close overhead cost variances to Cost of Goods Sold)

Table (2)

Note: Finished Goods Inventory is 5 percent of production.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Discuss the accounting treatment for investments in debt and equity securities.

Saved Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,310 in assets to launch the business. On December 31, the company's records show the following items and amounts. $ 10,200 Cash withdrawals by owner Cash Accounts receivable 15,200 Consulting revenue Office supplies 3,550 Rent expense Land 45,990 Office equipment 18,310 Accounts payable 8,740 Salaries expense Telephone expense Miscellaneous expenses Owner investments 84,310 $ 2,340 15,200 3,910 7,350 790 610 Use the above information to prepare a December 31 balance sheet for Ernst Consulting. AC Graw Hill ERNST CONSULTING Balance Sheet December 31 $ 0 G-SYNC $ 0 S 0 B

Audit, Fraud, Or Forensic Accounting Introduce yourself to your peers by sharing something unique about your background. Explain how you expect this course will help you move forward in your current or future career. This course covers forensic accounting, so it's important to establish the differences between an audit, a fraud examination, and a forensic accounting engagement. Think about the fraud conviction of Elizabeth Holmes, as described in the video, "Elizabeth Holmes Found Guilty in Theranos Fraud Trial." Then respond to the following: Imagine you are assigned to the Theranos case. Write the first five questions you would ask if you were an auditor, the first five questions as a fraud examiner, and the first five as a forensic accountant. After your questions, explain why the questions and approaches are different among the three roles. Be sure to respond to at least one of your classmates' posts.

Answer 2

Question

Chapter 17, Problem 40P

a.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

a.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Cost of Goods Sold			14,000
	(To close overhead cost variances to Cost of Goods Sold)

Table (1)

Working notes (1): Variable costs:

Actual Costs	Spending Variance	Actual Inputs at Standard Price	Efficiency Variance	Flexible Budget (Standard Inputs Allowed for Good Output)
$132,000		$122,000 ($126,000 – $4,000)		$126,000

	$10,000 U ( $132,000 – $122,000)		$4,000 F

Figure (1)

Working notes (1): Fixed costs:

Actual Costs	Price Variance	Budget	Production Volume Variance	Applied
$180,000		$190,000		$200,000

	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)
	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)

Figure (2)

b.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

b.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Finished Goods Inventory ($14,000×5100)			700
	Cost of Goods Sold ($14,000×95100)			13,300
	(To close overhead cost variances to Cost of Goods Sold)

Table (2)

Note: Finished Goods Inventory is 5 percent of production.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 17, Problem 40P

a.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

a.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Cost of Goods Sold			14,000
	(To close overhead cost variances to Cost of Goods Sold)

Table (1)

Working notes (1): Variable costs:

Actual Costs	Spending Variance	Actual Inputs at Standard Price	Efficiency Variance	Flexible Budget (Standard Inputs Allowed for Good Output)
$132,000		$122,000 ($126,000 – $4,000)		$126,000

	$10,000 U ( $132,000 – $122,000)		$4,000 F

Figure (1)

Working notes (1): Fixed costs:

Actual Costs	Price Variance	Budget	Production Volume Variance	Applied
$180,000		$190,000		$200,000

	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)
	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)

Figure (2)

b.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

b.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Finished Goods Inventory ($14,000×5100)			700
	Cost of Goods Sold ($14,000×95100)			13,300
	(To close overhead cost variances to Cost of Goods Sold)

Table (2)

Note: Finished Goods Inventory is 5 percent of production.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 40P

a.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

a.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Cost of Goods Sold			14,000
	(To close overhead cost variances to Cost of Goods Sold)

Table (1)

Working notes (1): Variable costs:

Actual Costs	Spending Variance	Actual Inputs at Standard Price	Efficiency Variance	Flexible Budget (Standard Inputs Allowed for Good Output)
$132,000		$122,000 ($126,000 – $4,000)		$126,000

	$10,000 U ( $132,000 – $122,000)		$4,000 F

Figure (1)

Working notes (1): Fixed costs:

Actual Costs	Price Variance	Budget	Production Volume Variance	Applied
$180,000		$190,000		$200,000

	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)
	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)

Figure (2)

b.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

b.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Finished Goods Inventory ($14,000×5100)			700
	Cost of Goods Sold ($14,000×95100)			13,300
	(To close overhead cost variances to Cost of Goods Sold)

Table (2)

Note: Finished Goods Inventory is 5 percent of production.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 40P

a.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

a.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Cost of Goods Sold			14,000
	(To close overhead cost variances to Cost of Goods Sold)

Table (1)

Working notes (1): Variable costs:

Actual Costs	Spending Variance	Actual Inputs at Standard Price	Efficiency Variance	Flexible Budget (Standard Inputs Allowed for Good Output)
$132,000		$122,000 ($126,000 – $4,000)		$126,000

	$10,000 U ( $132,000 – $122,000)		$4,000 F

Figure (1)

Working notes (1): Fixed costs:

Actual Costs	Price Variance	Budget	Production Volume Variance	Applied
$180,000		$190,000		$200,000

	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)
	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)

Figure (2)

b.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

b.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Finished Goods Inventory ($14,000×5100)			700
	Cost of Goods Sold ($14,000×95100)			13,300
	(To close overhead cost variances to Cost of Goods Sold)

Table (2)

Note: Finished Goods Inventory is 5 percent of production.

Answer 6

Chapter 17, Problem 40P

a.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

a.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Cost of Goods Sold			14,000
	(To close overhead cost variances to Cost of Goods Sold)

Table (1)

Working notes (1): Variable costs:

Actual Costs	Spending Variance	Actual Inputs at Standard Price	Efficiency Variance	Flexible Budget (Standard Inputs Allowed for Good Output)
$132,000		$122,000 ($126,000 – $4,000)		$126,000

	$10,000 U ( $132,000 – $122,000)		$4,000 F

Figure (1)

Working notes (1): Fixed costs:

Actual Costs	Price Variance	Budget	Production Volume Variance	Applied
$180,000		$190,000		$200,000

	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)
	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)

Figure (2)

Answer 7

Chapter 17, Problem 40P

a.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

Answer 8

a.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Cost of Goods Sold			14,000
	(To close overhead cost variances to Cost of Goods Sold)

Table (1)

Working notes (1): Variable costs:

Actual Costs	Spending Variance	Actual Inputs at Standard Price	Efficiency Variance	Flexible Budget (Standard Inputs Allowed for Good Output)
$132,000		$122,000 ($126,000 – $4,000)		$126,000

	$10,000 U ( $132,000 – $122,000)		$4,000 F

Figure (1)

Working notes (1): Fixed costs:

Actual Costs	Price Variance	Budget	Production Volume Variance	Applied
$180,000		$190,000		$200,000

	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)
	$10,000 F ($180,000 – $190,000)		$10,000 F ($190,000 – $200,000)

Figure (2)

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

b.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Finished Goods Inventory ($14,000×5100)			700
	Cost of Goods Sold ($14,000×95100)			13,300
	(To close overhead cost variances to Cost of Goods Sold)

Table (2)

Note: Finished Goods Inventory is 5 percent of production.

Answer 13

b.

To determine

Prepare the journal entries that the company would make to record and close out the variances.

Answer 14

b.

Expert Solution

Explanation of Solution

Prepare the journal entries that the company would make to record and close out the variances as follows:

Date	Account Titles and Explanations	Post. Ref.	Debit ($)	Credit ($)
	Actual Variable Overhead		132,000
	Accounts Payable			132,000
	(To record the purchase of variable overhead resources)

	Work-in-Process Inventory		126,000
	Applied Variable Overhead			126,000
	(To record the variable overhead at standard rates to production)

	Applied Variable Overhead		126,000
	Variable Overhead Spending Variance		10,000
	Variable Overhead Efficiency Variance			4,000
	Actual Variable Overhead			132,000
	(To record the variable overhead variances)

	Applied Fixed Overhead		200,000
	Fixed Overhead Price Variance			10,000
	Fixed Overhead Production Volume variance			10,000
	Actual Fixed Overhead			180,000
	(To close the variable overhead variances)

	Variable Overhead Efficiency Variance		4,000
	Fixed Overhead Price Variance		10,000
	Fixed Overhead Production volume variance		10,000
	Variable Overhead Spending Variance			10,000
	Finished Goods Inventory ($14,000×5100)			700
	Cost of Goods Sold ($14,000×95100)			13,300
	(To close overhead cost variances to Cost of Goods Sold)