The following information comes from the records of Magno Co. for the current period.a. Compute the overhead controllable and volume variances. In each case, state whether the variance is favorable or unfavorable.b. Prepare the journal entries to charge overhead costs to work in process and the overhead variances to their proper accounts.Actual costs and quantities:? Direct materials used ………………………...38,000 feet @ $6.20 per foot Direct labor hours used ………………………50,660 hours Direct labor rate per hour …………………….$16 Factory overhead …………………………….$211,600 25,000 units were produced during the period.???Standard costs and quantities per unit:? Direct materials
……………………………….1.5 ft. @ $6.10 per ft. Direct labor ……………………………………2 hours @ $17 per hourFactory overhead (based on budgeted production of 24,500 units)Variable overhead $2.25/direct labor hourFixed overhead $1.95/direct labor hour
What will be an ideal response?
| Overhead: | ? | ? |
| Actual overhead (given) ………………………. | ? | $211,600 |
| Budgeted overhead | ? | ? |
| Variable (50,000 hr. ? $2.25/hr) | $112,500 | ? |
| Fixed (24,500 units ? 2 hr./unit ? $1.95/hr.) | 95,550 | ? |
| Total budgeted overhead …………………. | ? | 208,050 |
| Controllable variance …………………………. | ? | $ 3,550 U |
| ? | ? | ? |
| Budgeted overhead (above) …………………… | ? | $208,050 |
| Overhead allocated to production | ? | ? |
| Variable (50,000 hr. ? $2.25/hr) ………….. | $112,500 | ? |
| Fixed (50,000 hr. ? $1.95/hr) ……………... | 97,500 | ? |
| Total overhead allocated ………………….. | ? | 210,000 |
| Overhead volume variance ……………………. | ? | $ 1,950 F |
| Work in Process Inventory | 210,000 | ? |
| Controllable Variance | 3,550 | ? |
| Volume Variance | ? | 1,950 |
| Factory Overhead | ? | 211,600 |
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