Schulz Corporation Applies Overhead Based Upon Machine-Hours

question 195

Essay

Schulz Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $266,400 and budgeted machine-hours were 18,500. Actual factory overhead was $287,920 and actual machine-hours were 19,050. Before disposition of under/overapplied overhead, the cost of goods sold was $560,000 and ending inventories were as follows:

Required:
a.Determine the budgeted factory overhead rate per machine-hour.
b.Compute the over/underapplied overhead.
c.Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach.
d.Prepare the journal entry to dispose of the variance using the proration approach.

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Definitions:

Collaboration

The action of working with someone to produce or create something, especially in a learning or professional context.

Cooperative

An entity or organization owned and operated for the mutual benefit of its members, sharing profits or benefits among participants.

Assertiveness

A communication style in which individuals express their thoughts and feelings in a direct, honest, and respectful way.

Conflict Management

The approach of pinpointing and addressing clashes in a logical, just, and proficient style.