Automotive parts overstock (apo) has normal budgeted overhead costs of $348,400 and a normal capacity of 52,000 direct labor hours for the first quarter, which are evenly distributed between months. apo allows 1.2 direct labor hours per unit, and they produced 15,000 units in the second month of the quarter. this took them 16,500 labor hours. apo had variable overhead costs of $52,200 and fixed overhead of $41,400 costs in the month. what was the overhead variance for the month?

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?