Marshall Corp End of Year Balances Are as Follows Required:
A

question 40

Essay

Marshall Corp. uses a budgeted factory- overhead rate to apply overhead to production. The following data are available for the year: $\begin{array}{ll}\text { Budgeted factory overhead } & \$ 675,000 \\\text { Actual factory ow erhead } & \$ 726,000 \\\text { Budgeted direct-labor costs } & \$ 450,000 \\\text { Actual direct- lab or costs } & \$ 482,000\end{array}$
End of year balances are as follows: $$\begin{array} { l l } \text { Materials inventory } & \$ 120,000 \\\text { WIP inventory } & \$ 100,000 \\\text { Cost of goods sold } & \$ 150,000 \\\text { Finished goods inventory } & \$ 250,000\end{array}$$ Required:
a. Determine the budgeted factory- overhead rate based on direct- labor costs.
b. What is the applied overhead based on direct- labor costs?
c. What is the overhead variance?
d. Prorate the overhead variance to the appropriate accounts.

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Definitions:

Standard Deviation

It quantifies the degree to which individual data points in a dataset deviate from the dataset's mean.

Monthly Payroll

The total sum of all forms of compensation that employees receive from their employer within a month.

Accounting Firm

An organization specializing in performing financial tasks for individuals or businesses, such as audits, tax filings, and financial consulting.

Standard Deviation

Measures the amount of variation or dispersion of a set of values from the mean in a dataset.