23 at the end of the fiscal year the fixed overhead spending variance is always pror 4309451

23) At the end of the fiscal year, the fixed overhead spending variance is always prorated among work-in-process control, finished goods control, and cost of goods sold on the basis of the fixed overhead allocated to these accounts.

24) Lungren has budgeted construction overhead for August of $260,000 for variable costs and $435,000 for fixed costs. Actual costs for the month totaled $275,000 for variable and $445,000 for fixed. Allocated fixed overhead totaled $440,000. The company tracks each item in an overhead control account before allocations are made to individual jobs. Spending variances for August were $10,000 unfavorable for variable and $10,000 unfavorable for fixed. The production-volume overhead variance was $5,000 favorable.


a.Make journal entries for the actual costs incurred.

b.Make journal entries to record the variances for August.

25) Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows:

Budgeted output units3,200units

Budgeted fixed manufacturing overhead$20,000

Budgeted variable manufacturing overhead$5per direct labor hour

Budgeted direct manufacturing labor hours2hours per unit

Fixed manufacturing costs incurred$26,000

Direct manufacturing labor hours used7,200

Variable manufacturing costs incurred$35,600

Actual units manufactured3,400


a.Compute a 4-variance analysis for the plant controller.

b.Compute a 3-variance analysis for the plant manager.

c.Compute a 2-variance analysis for the corporate controller.


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