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
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(B) Actual photo of fetus at week 9.
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