as discussed in chapter 2 quot how is job costing used to track production costs quo 1571509

As discussed in Chapter 2 “How Is Job Costing Used to Track Production Costs?”, the manufacturing overhead account is debited for all actual overhead expenditures and credited when overhead is applied to products. At the end of the period, the balance in manufacturing overhead, representing over applied or under applied overhead, is closed out to cost of goods sold. This over applied or under applied balance can be explained by combining the four overhead variances summarized in this chapter in Figure 10.14 “Comparison of Variable and Fixed Manufacturing Overhead Variance Analysis for Jerry’s Ice Cream”. How are these variances recorded for transactions related to manufacturing overhead?