Tuesday, June 14, 2011

Brandon’s Basketball Manufacturing Company reported:

ACCOUNTING

Multiple Choice

Brandon’s Basketball Manufacturing Company reported:

Actual fixed overhead $1,000,000

Fixed manufacturing overhead spending variance $60,000 unfavorable

Fixed manufacturing production-volume variance $40,000 unfavorable


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

a. debit Fixed Manufacturing Overhead Allocated for $1,000,000.

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

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

d. credit Fixed Manufacturing Control Allocated for $900,000

Click here for the SOLUTION

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