Sinclair Manufacturing Uses a Standard Cost System

question 69

Essay

Sinclair Manufacturing uses a standard cost system.The T-account for manufacturing overhead is shown below:

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.

---

Definitions:

Wernicke's Encephalopathy

A serious neurological disorder caused by thiamine (vitamin B1) deficiency, typically associated with chronic alcoholism, characterized by confusion, unsteady gait, and eye movement abnormalities.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling responses.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period of time, often defined as five or more drinks for men and four or more for women in about two hours.

Stimulant Use Disorder

A mental health condition characterized by the problematic use of substances that stimulate the central nervous system, leading to significant impairment or distress.