The following information comes from the records of Magno Co.for the current period.
a.Compute the overhead controllable and volume variances.In each case,state whether the variance is favorable or unfavorable.
b.Prepare the journal entries to charge overhead costs to work in process and the overhead variances to their proper accounts.
Factory overhead (based on budgeted production of 24,500 units)
Variable overhead $2.25/direct labor hour
Fixed overhead $1.95/direct labor hour
Definitions:
ΔG°
Standard Gibbs free energy change, a thermodynamic quantity indicating the spontaneity of a reaction at standard conditions; negative values suggest spontaneity.
Exothermic
A chemical reaction or process that releases heat to its surroundings.
Endothermic
Describes a process or reaction that absorbs energy from its surroundings, typically in the form of heat.
Equilibrium Concentration
The concentration of reactants and products in a chemical reaction that remains constant over time at equilibrium.
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