Tuesday, June 14, 2011

Alvarado Company made the following journal entry, therefore:

ACCOUNTING

Multiple Choice

Alvarado Company made the following journal entry, therefore:


Variable Manufacturing Overhead Allocated $100,000

Variable Manufacturing Overhead Efficiency Variance 30,000

Variable Manufacturing Overhead Control $125,000

Variable Manufacturing Overhead Spending Variance 5,000


a. Alvarado overallocated variable manufacturing overhead.

b. a $5,000 favorable spending variance was recorded.

c. Work-in-Process is currently overstated.

d. this entry may be recorded yearly to provide timely feedback to managers.

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