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The Accustart Company uses a standard costing system
The Accustart 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Account Titles and Explanation Debit Credit
- _______________________________ ____________ ______________
________________________________ _____________ _______________
enter an account title to record actual overhead incurred
enter a debit amount
enter a credit amount
enter an account title to record actual overhead incurred
enter a debit amount
enter a credit amount
(To record actual overhead incurred)
2. _______________________________ ____________ ______________
________________________________ _____________ _______________
enter an account title to record overhead applied
enter a debit amount
enter a credit amount
enter an account title to record overhead applied
enter a debit amount
enter a credit amount
(To record overhead applied)
3._______________________________ ____________ _____________ ________________________________ _____________ _______________
____________________________________ _____________ _______________
enter an account title to close manufacturing overhead and record overhead variances
enter a debit amount
enter a credit amount
enter an account title to close manufacturing overhead and record overhead variances
enter a debit amount
enter a credit amount
enter an account title to close manufacturing overhead and record overhead variances
enter a debit amount
enter a credit amount
(To close manufacturing overhead and record overhead variances)
Expert Solution
| Journal Entries: | |||||
| No. | Accounts Titles & Explanation | Debit | Credit | ||
| 1 | Manufacturing overhead | 570000 | |||
| Accounts Payable | 570000 | ||||
| (To record actual overhead incurred) | |||||
| 2 | Work in Process Inventory | 550206 | (132900*4.14) | ||
| Manufacturing overhead | 550206 | ||||
| (To record overhead applied) | |||||
| 3 | Overhead Volume Variance | 6598 | (570000-550206)*1/3 | ||
| Controllable Overhead Variance | 13196 | (570000-550206)*2/3 | |||
| Manufacturing overhead | 19794 | ||||
| (To Close Manufacturing overhead and record overhead variances) | |||||
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