Learn Journal Entry Skill for Variable Overhead Costs and Variances from Our Experts
It is important for an accountant to gain enough proficiency in a journal entry since it helps in keeping accounting transactions in chronological order. There are various components which an accountant considers to enter in a journal. Variable overhead costs and variances are also the part of a journal.
We at myhomeworkhelp.com offer journal entries for variable overhead costs and variances homework help with an aim to enhance so that our students can learn the skill of journal entry without any error.
Explaining variable costs:
- Variable overhead cost is that manufacturing cost which varies roughly corresponding to changes in production output. Accountants use this concept to plan the future expenses of a business and to find out the lowest possible price for selling a product. Examples of variable overhead are:
Production supplies (ii) Equipment utilities (iii) Materials handling wages
- Variable overhead variances is an analysis tool to analyze variable overhead. There are two types of variable overhead variances- variable overhead efficiency variance and variable overhead spending variance.
The variances are under allocated or over allocated variable overhead costs. On completion of the financial year, you need to write off the variance accounts to selling prices of goods if immaterial in amount. In a case the variances are material in amount, they are prorated among work-in- process control, finished goods control, and selling prices of goods on the basis of the variable overhead assigned to these accounts.
While journal entry of variable overhead variances, you should keep in mind that only unavoidable costs are prorated. Any part of the variances which you can attribute to avoidable inefficiency should be written off in the period.
When our experts offer journal entries for variable overhead costs and variances homework help, they take into account all these factors.
Questions to solve from our manuals:
Journal entries for variable overhead costs and variances homework help question bank:
- Variable overhead control 13, 05, 000
Accounts payable and several other accounts 13,05, 000 To record actual variable overhead costs incurred
- Work-in-process control 12, 00, 000
Variable overhead assigned 12, 00, 000
Variable overhead allocated 12, 00, 000
Variable overhead efficiency variance 15, 000 Variable overhead control 13, 05, 000
- Variable overhead spending variance 45, 000
To record variances for the accounting period
Journal entry is quite confusing, and one must enter the data very cautiously. Students often ask for our journal entries for variable overhead costs and variances assignment help when they get multiple assignments at the same time.
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