Carlson Corporation Applies Overhead Based Upon Machine-Hours Required:
A

Carlson Corporation applies overhead based upon machine-hours.Budgeted factory overhead was $266,400 and budgeted machine-hours were 18,500.Actual factory overhead was $287,920 and actual machine-hours were 19,050.Before disposition of over- or underapplied overhead,the cost of goods sold was $560,000 and ending inventories were as follows:
$$\begin{array} { | l c | } \hline \text { Direct materials } & \$ 60,000 \\\hline \text { MIP } & 190,000 \\\hline \text { Finished goods } & \underline { 250,000 } \\\hline \text { Total } & \$ 500,000 \\\hline\end{array}$$
Required:
a.Compute the amount of overhead applied to production.b.Prepare the journal entry to dispose of the over/under-applied overhead using the write-off to cost of goods sold approach.c.Prepare the journal entry to dispose of the over/under-applied overhead using the proration approach.

Correct Answer:

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(a)$274,320
\[\begin{array} { | l | l ...

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