2. Kidz Toys Manufacturing applies overhead based upon machine-hours. The company reported the following information...
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Accounting
2. Kidz Toys Manufacturing applies overhead based upon machine-hours. The company reported the following information in 2020: Budgeted Actual Factory overhead S455,000 $475,000 Machine-hours 25,400 mh 26,100 mh Before disposition of under/overapplied overhead, the cost of goods sold was $849,000 and ending inventories were as follows: Direct materials $135,000 WIP 269,000 Finished goods 376,000 Total $780.000 Required: a. Determine the budgeted factory overhead rate per machine-hour. (2 points) b. Compute the over/underapplied overhead. (3 points) c. Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. (2 points) d. Prepare the journal entry to dispose of the variance using the proration approach. (3 points)
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