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Newbery Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in
Newbery Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The fixed manufacturing overhead standards for the company's only product specify hours per unit at $ per hour. The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $ and budgeted activity of hours. During the year, units were started and completed. Actual fixed overhead costs for the year were $
Assume that all transactions are recorded on a worksheet as shown in the text. On the lefthand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E net All of the variance columns are on the righthandside of the equals sign along with the column for Retained Earnings.
When the fixed manufacturing overhead cost is recorded, which of the following entries will be made?
Multiple Choice
$ in the FOH Budget Variance column
$ in the FOH Budget Variance column
$ in the FOH Volume Variance column
$ in the FOH Volume Variance column
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