At the Beginning of the Year, Fluman Corporation Estimates Overhead

question 107

Short Answer

At the beginning of the year, Fluman Corporation estimates overhead will be $150,000. If the actual overhead for the year is $152,000 and the applied overhead for the year is $143,000, what is the journal entry needed to reconcile the overhead variance? Assume that the overhead variance is immaterial.

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Definitions:

Least Squares

A mathematical procedure for finding the best-fitting curve to a given set of points by minimizing the sum of the squares of the offsets (the vertical distances) from the points to the curve.

Traffic Accidents

Traffic accidents are unexpected events involving vehicles on the road, leading to damage, injuries, or fatalities, often caused by risky driving behaviors, environmental conditions, or mechanical failures.

Independent

A variable or condition that is manipulated or classified in an experiment to investigate its effect on the dependent variable without being influenced by other variables.

Deviations

Differences between individual observations and a central point, often the mean, in a data set.