If Miller Company makes the following journal entry: Variable Overhead Allocated ............................... 50,000 Variable Overhead Efficiency Variance
Question:
If Miller Company makes the following journal entry:
Variable Overhead Allocated ............................... 50,000
Variable Overhead Efficiency Variance .............. 15,000
Variable Overhead Control ............................................... 62.500
Variable Overhead Spending Variance ............................. 2.500
It may be inferred that
O Actual variable manufacturing overhead costs were $62.500
O Miller over-allocated variable manufacturing overhead
O The journal entry accounts are incorrect
O The net variance is a $5,000 favourable spending variance
O The net variance is a $5,000 unfavourable spending variance
College Accounting
ISBN: 978-1119405962
1st Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Deanna C. Martin, Jill E. Mitchell