Tate Company makes the following journal entry, therefore:

ACCOUNTING

Multiple Choice

Tate Company makes the following journal entry, therefore:


Variable Manufacturing Overhead Allocated $150,000

Variable Manufacturing Overhead Efficiency Variance 5,000

Variable Manufacturing Overhead Control $125,000

Variable Manufacturing Overhead Spending Variance 30,000


a. Tate underallocated variable manufacturing overhead.

b. a $30,000 unfavorable spending variance was recorded.

c. Work-in-Process is currently understated.

d. a $25,000 favorable flexible-budget variance was recorded.

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