88) Russell Company had the following balances as of December 31, 20X5.
Cost of goods sold$500,000
Finished goods inventory160,000
Factory department overhead control50,000 Cr.
a. Does the variance represent over- or underapplied overhead?
b.Prepare the entry to dispose of the variance using the proration method.
c.What effect, if any, did the entry in part b have on gross profit?