Problem
Starlight Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate $ 5.00 per direct-labor hour
Standard quantity of direct labor 3 hours per unit of output
Budgeted fixed overhead $ 120,000
Budgeted output 20,000 units
Actual results for February are as follows:
Actual output 15,000 units
Actual variable overhead $ 304,000
Actual fixed overhead $ 128,000
Actual direct labor 50,000 hours
Required:
Prepare journal entries for the following transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
• Record the incurrence of actual variable overhead and actual fixed overhead.
• Add variable and fixed overhead to Work-in-Process Inventory.
• Close underapplied or overapplied overhead into Cost of Goods Sold.