Question 8 (10 points)

Widget manufacturing Company is closing out production jobs for the month of May. The standard material quantity is 1,000 pounds and the company actually used 940 pounds. The journal entry to record the quantity variance would include:

Question 8 options:

	a credit to materials quantity variance
	a credit to work in process inventory
	a debit to raw materials inventory
	a debit to materials quantity variance

Question 9 (10 points)

Widget manufacturing is closing out the month of July. The budget called for production of 4,000 units but actual production was only 3,500 units. The entry to apply fixed factory overhead would include a:

Question 9 options:

	credit to fixed overhead volume variance
	debit to factory overhead
	credit to Work in Process Inventory
	debit to fixed overhead volume variance
	debit to fixed overhead spending variance

Question 10 (10 points)

Actual direct labor for the month of June totaled 14,500 hours compared to an allowed standard of 15,000 hours. Total actual overhead was $33,000. The standard overhead application rate is $2.25 per direct labor hour. What was the overhead spending variance for the month?

Question 10 options:

	$375 favorable
	$375 unfavorable
	$750 favorable
	$750 unfavorable