Question
A firm with a standard costing system applies $30,000 of fixed overhead (FOH) and $25,000 of variable overhead (VOH), and records the following overhead variances:
A firm with a standard costing system applies $30,000 of fixed overhead (FOH) and $25,000 of variable overhead (VOH), and records the following overhead variances:
| FOH Budget Variance | $3,000 Favorable |
| FOH Volume Variance | $0 |
| VOH Spending Variance | $1,000 Favorable |
| VOH Efficiency Variance | $2,000 Unfavorable |
Which of the following entries would be made to record variances at the end of the period, assuming that overhead is applied at standard costs over the course of the period?
Group of answer choices
| Work-in-Process Inventory | $55,000 | ||
| VOH Spending Variance | $1,000 | ||
| FOH Budget Variance | $3,000 | ||
| VOH Efficiency Variance | $2,000 | ||
| COGS | $2,000 | ||
| MOH | $55,500 | ||
| Work-in-Process Inventory | $55,000 | ||
| MOH | $55,000 | ||
| Work-in-Process Inventory | $55,000 | ||
| VOH Efficiency Variance | $2,000 | ||
| COGS | $2,000 | ||
| VOH Spending Variance | $1,000 | ||
| FOH Budget Variance | $3,000 | ||
| MOH | $55,000 | ||
| Work-in-Process Inventory | $55,000 | ||
| VOH Efficiency Variance | $2,000 | ||
| VOH Spending Variance | $1,000 | ||
| FOH Budget Variance | $3,000 | ||
| MOH | $53,000 | ||
| Work-in-Process Inventory | $53,000 | ||
| VOH Spending Variance | $1,000 | ||
| FOH Budget Variance | $3,000 | ||
| VOH Efficiency Variance | $2,000 | ||
| MOH | $55,000 | ||
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Auditing Principles Practice And Problems
Authors: Jagdish Prakash
1st Edition
9327244745, 978-9327244748
