Sinclair Manufacturing Uses a Standard Cost System $$\begin{array} { c } \text { Manufacturing overhead } \\\hline\begin{array}{l|l}95,000 \\&93,000\end{array}\end{array}$$

question 200

Essay

Sinclair Manufacturing uses a standard cost system.The T-account for manufacturing overhead is shown below:
$$\begin{array} { c } \text { Manufacturing overhead } \\\hline\begin{array}{l|l}95,000 \\&93,000\end{array}\end{array}$$ In addition to the above,Sinclair calculated the following overhead variances:
Variable overhead cost variance: $5,000 F
Variable overhead efficiency variance: $4,850 U
Fixed overhead cost variance: $1,200 F
Fixed overhead volume variance: $3,350 U
Prepare the journal entry to close the manufacturing overhead account and record the overhead variances.

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Definitions:

Abraham Maslow's

Abraham Maslow's work in psychology emphasized the importance of focusing on the positive qualities in people, as opposed to treating them as a 'bag of symptoms'.

Hierarchy of Needs

A motivational theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs, culminating in self-actualization.

Physiological

Relating to the functions and activities of living organisms and their parts, including all physical and chemical processes.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often seen as the highest need in Maslow's hierarchy of needs.