Question 1
A $5,000 unfavorable flexible-budget variance indicates that ________.
◦ the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000
◦ the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000
◦ the flexible-budget amount exceeded standard variable manufacturing overhead by $5,000
◦ the standard variable manufacturing overhead exceeded the flexible-budget amount by $5,000
Question 2
A company is using a standard cost system and receives its electricity bill. Electricity is considered a variable cost of operations for this company. The bill is for $15,000 and will be paid next month. Which of the following entries would be the correct recording of the electricity bill?
◦
| Work-in-Process Control | $15,000 |
| Variable Overhead Allocated | $15,000 |
◦
| Variable Overhead Control | $15,000 |
◦
| Work-in-Process Control | $15,000 |
◦
| Variable Overhead Control | $15,000 |
| Variable Overhead Allocated | $15,000 |
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