Overhead variance (over- or underapplied), closing to cost of goods sold

at the end of the year, ilberg company provided the following actual information:

overhead $423,600
direct labor cost 532,000
ilberg uses normal costing and applies overhead at the rate of 80% of direct labor cost. at the end of the year, cost of goods sold (before adjusting for any overhead variance) was $1,890,000.

dispose of the overhead variance by adjusting cost of goods sold. adjusted cogs $

calculate the overhead variance for the year. $

This question has two requirements answer of each requiremnt is given below.

Dispose of the overhead variance by adjusting Cost of Goods Sold. Adjusted COGS $

Applied Overhead = 532,000 * 80% =$ 425,600

This show that overhead are over apllied, so

Adjusted COGS = $1,890,000 - (425,600 -423,600)

                            = $ 1,888,000

Calculate the overhead variance for the year. $

Overhead variance = Applied Overhead - Actual Overhead

                                = 425,600 -423,600

                                = $ 2000 (Favorable variance)

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number