If Jordan Company makes the following journal entry:

Variable Overhead Allocated

$100 000

Variable Overhead Efficiency Variance

30 000

Variable Overhead Control

$125 000

Variable Overhead Spending Variance

5 000

It may be inferred that:

Select one:

1.Jordan over-allocated variable manufacturing overhead.

2.the net variance is a $10 000 favourable spending variance.

3.Work-in-Process, Finished Goods, and Cost of Goods Sold balances are understated.

4.the journal entry accounts are incorrect.

5.none of the above