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The variance summary for Bell Computers is as follows:Bell ComputersVariance SummaryFor the Year Ended December 31, 2012Material price variance ...........($ 4,200) favorableMaterial quantity variance ............$ 3,300 unfavorableLabor rate variance ..............($ 165) favorableLabor efficiency variance ..........$ 2,650 unfavorableControllable overhead variance .........$ 2,550 unfavorableOverhead volume variance ..........$ 4,550 unfavorableTotal ....................$ 8,685 unfavorable
Required:
Prepare a journal entry to close the variance accounts at Bell Computers .Assume that the total variance is not material and is closed to cost of goods sold.
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