Carlson Corporation Applies Overhead Based Upon Machine-Hours Required:
A

question 79

Essay

Carlson Corporation applies overhead based upon machine-hours.Budgeted factory overhead was $266,400 and budgeted machine-hours were 18,500.Actual factory overhead was $287,920 and actual machine-hours were 19,050.Before disposition of over- or underapplied overhead,the cost of goods sold was $560,000 and ending inventories were as follows:
$$\begin{array} { | l c | } \hline \text { Direct materials } & \$ 60,000 \\\hline \text { MIP } & 190,000 \\\hline \text { Finished goods } & \underline { 250,000 } \\\hline \text { Total } & \$ 500,000 \\\hline\end{array}$$
Required:
a.Compute the amount of overhead applied to production.b.Prepare the journal entry to dispose of the over/under-applied overhead using the write-off to cost of goods sold approach.c.Prepare the journal entry to dispose of the over/under-applied overhead using the proration approach.

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Definitions:

Managing Suppliers

The process of overseeing and coordinating activities with suppliers to ensure the quality, delivery, and cost of goods and services meet an organization's requirements.

Regulations Compliance

entails adhering to laws, policies, and regulations that govern how a business operates, ensuring it meets legal and ethical standards.

Measuring Performance

The process of evaluating the efficiency, effectiveness, and quality of work done by an organization, program, or employee.

Supply Function

The role or operation focused on managing and overseeing the procurement and provision of goods and services.