You Are Provided with the Following Summary of Overhead-Related Costs

question 59

Essay

You are provided with the following summary of overhead-related costs for the most recent accounting period for a company that uses a single overhead account, Factory Overhead, into which it records both actual and standard overhead costs during the period:
1. Overhead standard cost variances for the period:
a. Fixed overhead (FOH) spending variance = $1,600U
b. Fixed overhead production volume variance = $200F
c. Variable overhead (VOH) efficiency variance = $1,050U
d. Variable overhead (VOH) spending variance = $150U
2. Actual fixed overhead cost incurred (depreciation) = $15,800; actual variable overhead cost incurred (paid in cash) = $4,800
3. Standard overhead cost applied to production (i.e., WIP inventory) during the period = $18,000
4. Standard overhead cost of units transferred to Finished Goods Inventory = $20,000
5. Before closing its accounts at the end of the period, the (standard cost) amounts affecting the inventory and CGS accounts are as follows:
Required:
Prepare the proper journal entry for each of the following events:
1. Incurrence of actual fixed overhead (FOH) costs for the period.
2. Incurrence of actual variable overhead (VOH) costs for the period.
3. Application of standard overhead costs to production (i.e., to WIP inventory).
4. Recording of standard overhead costs for units completed during the period.
5. Recording of the four standard cost variances for the period.
6. Closing the standard cost variances, under the assumption that the company closes these variances entirely to Cost of Goods Sold (CGS).
7. Closing the standard cost variances, under the assumption that the company prorates the variances to the CGS and inventory accounts. (Note: round allocated amounts to nearest whole dollar.)

Understand the concept of self-monitoring in personality and its implications in personal and professional contexts.

Recognize the role of stereotypes, selective perception, and other perception filters in shaping our view of the world.

Identify internal factors influencing perception.

Describe the nature, characteristics, and misconceptions of personality.

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Definitions:

Axle Spindle

A component of the wheel assembly that provides a mounting point for the wheel and its bearing, allowing the wheel to rotate freely around the axle.

Brake Drum

A component of a drum brake system, where brake shoes press against the interior to create friction and slow down the vehicle.

Kinetic Energy

The energy of motion.

Mechanical Action

The physical movement or force applied by machinery or mechanical components to perform a function.