McMann Company makes lawn care equipment. It applies overhead at the rate of 125% of direct labor costs. During the year, direct labor costs were $140,000. The actual overhead was $177,000. Make the appropriate general journal entry dated December 31, 20--, to adjust the factory overhead account balance (under- or overapplied) for the year. GENERAL JOURNAL Page 1 Date Description Post Ref. Debit Credit
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
McMann Company makes lawn care equipment. It applies
GENERAL JOURNAL Page 1
Date Description Post Ref. Debit Credit
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