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Author Question: Bismith Company reported: Actual fixed overhead$700,000Fixed manufacturing overhead spending ... (Read 187 times)

dejastew

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on: Mar 6, 2021

Question 1

An unfavorable fixed overhead spending variance indicates that ________.
◦ there was more excess capacity than planned
◦ the price of fixed overhead items cost more than budgeted
◦ the fixed overhead cost-allocation base was not used efficiently
◦ the denominator level was more than planned

Question 2

Bismith Company reported:
Actual fixed overhead$700,000
Fixed manufacturing overhead spending variance$40,000 unfavorable
Fixed manufacturing production-volume variance$30,000 unfavorable

To record the write-off of these variances at the end of the accounting period, Bismith would ________.
◦ credit Fixed Manufacturing Overhead Allocated for $700,000
◦ debit Fixed Manufacturing Overhead Spending Variance for $40,000
◦ credit Fixed Manufacturing Production-Volume Variance for $30,000
◦ debit Fixed Manufacturing Control for $700,000
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by dejastew on Mar 6, 2021

alvinum

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Reply #1 on: Mar 6, 2021
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dejastew

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Reply 2 on: Mar 6, 2021
:D TYSM

hollysheppard095

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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