Kristin’s Basketball Manufacturing Company reported:

ACCOUNTING

Multiple Choice

Kristin’s Basketball Manufacturing Company reported:

Actual fixed overhead $800,000

Fixed manufacturing overhead spending variance $60,000 favorable

Fixed manufacturing production-volume variance $40,000 favorable



To isolate these variances at the end of the accounting period, Kristin would

a. debit Fixed Manufacturing Overhead Allocated for $900,000.

b. debit Fixed Manufacturing Overhead Spending Variance for $60,000.

c. debit Fixed Manufacturing Production-Volume Variance for $40,000

d. do all of the above

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