Solution-Prepare the journal entries for the actual costs

Prepare the journal entries for the actual costs incurred

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Reference no: EM132907480

Question - For November 2020, Lundgren Ltd. allocated $260,000 in variable manufacturing overhead (VMOH) costs and $440,000 of fixed manufacturing overhead (FMOH) costs. The actual costs for the month were $275,000 for VMOH and $445,000 for FMOH. The company tracks each item in an overhead control account before allocations are made to individual jobs.

The VMOH rate variance for August was $10,000 unfavorable and the FMOH spending variance was $10,000 unfavorable. The FMOH production-volume variance was $5,000 favorable.

The VMOH efficiency variance amount is a 'mystery' and unknown at this time. (HINT: you will need to solve this 'mystery' in order to answer part b).

Required -

a. Prepare the journal entries for the actual costs incurred.

b. Prepare the journal entry to close the VMOH accounts and record the VMOH variances for August.

c. Prepare the journal entry to close the FMOH accounts and record the FMOH variances for August.

Reference no: EM132907480

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Prepare the journal entries for the actual costs incurred

Reference no: EM132907480

Reference no: EM132907480

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