Lungren Has Allocated Budgeted Construction Overhead for August of $260,000

question 140

Essay

Lungren has allocated budgeted construction overhead for August of $260,000 for variable costs and $440,000 for fixed costs.Actual costs for the month totalled $275,000 for variable and $445,000 for fixed.Allocated fixed overhead totalled $440,000.The company tracks each item in an overhead control account before allocations are made to individual jobs.Rate variances for August were $10,000 unfavourable for variable and $10,000 unfavourable for fixed.The production-volume overhead variance was $5,000 favourable.Required:
a.Prepare journal entries for the actual costs incurred.
b.Prepare journal entries to record the variances for August.

Understand the implications of permanent differences on taxable and financial income.

Recognize the role of GAAP in tax allocation and the objectives behind income tax accounting.

Calculate the tax base of assets and liabilities for the purpose of recognizing deferred taxes.

Understand the concept of temporary differences in accounting.

---

Definitions:

Treatment Lacks

Situations in which there is an insufficiency or absence of adequate medical, therapeutic, or rehabilitation services for health conditions.

Formal Definition

A precise and explicit explanation of a term using clear and unambiguous language, typically found in academic, legal, or professional contexts.

Partial Hospitalization

A structured program of outpatient psychiatric services as an alternative to inpatient hospitalization.

SUD Treatment Models

Various therapeutic frameworks and methodologies used to address Substance Use Disorders, often underpinned by psychological, medical, or social theories.