question archive Sanders Manufacturing has the following amounts listed before reconciling the overhead variance
Sanders Manufacturing has the following amounts listed before reconciling the overhead variance
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Sanders Manufacturing has the following amounts listed before reconciling the overhead variance.
| Estimated overhead |
$760,000 |
| Applied overhead |
756,000 |
| Actual overhead |
740,000 |
| Cost of goods sold |
935,000 |
Assuming that any overhead variance is immaterial, calculate the adjusted Cost of Goods Sold after adjusting for the overhead variance.
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Answer:
Cost of good sold = 935000 assuming applied overhead of $756,000
actual overhead = $740,000
variance = 740000 - 756000 = -16000
thus cost of goods sold = 935000 - 16000 = 919,000
