OVERHEAD VARIANCE (OVEROR UNDERAPPLIED), CLOSING TO COST OF GOODS SOLD At the end of the year, Kreskin Company provided the following actual information: Kreskin uses normal costing and applies overhead at the rate of 75 percent of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $890,000.

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OVERHEAD VARIANCE (OVEROR UNDERAPPLIED), CLOSING TO COST OF GOODS SOLD

At the end of the year, Kreskin Company provided the following actual information:

Kreskin uses normal costing and applies overhead at the rate of 75 percent of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $890,000.

 

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Measurement of Overhead Cost

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