The Covington Company uses a standard costing system

The Covington Company uses a standard costing system. During 2021, the company incurred actual overhead of $570,000. The standard rate for applying overhead is $4.14 per unit, and 132,900 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

No.

Account Titles and Explanation

Debit

Credit

1.

(To record actual overhead incurred)

2.

(To record overhead applied)

3.

(To close manufacturing overhead and record overhead variances)

List of Accounts to choose from for the left-hand column:

• Accounts Payable
• Accounts Receivable
• Controllable Overhead Variance
• Cost of Goods Sold
• Finished Goods Inventory
• Labor Efficiency Variance
• Labor Rate Variance
• Material Price Variance
• Material Quantity Variance
• Manufacturing Overhead
• Miscellaneous Accounts
• Overhead Volume Variance
• Raw Materials Inventory
• Wages Payable
• Work in Process Inventory