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Manama Company has budgeted its overhead costs for July 2020 as follows: budgeted $26,000 Actual $27,500 Variable manufacturing overhead costs Fixed manufacturing $43,500 $44,500 overhead costs It allocated fixed manufacturing overhead to work-in-process of $44,000. Variances for July were $1,000 unfavorable variable manufacturing overhead spending variance $1,000 unfavorable fixed manufacturing overhead spending variance. $500 favorable fixed manufacturing overhead production-volume variance What is the correct journal entry to record fixed manufacturing overhead costs and their variances. O A. WIP 43,500 Fixed Overhead Control 43,500 O B. Fixed Overhead Control 44,500 Fixed Overhead Production-Volume Variance 500 1,000 Fixed Overhead Spending Variance Fixed Overhead Allocated 44,000 O C. Fixed Overhead Allocated 44,000 1,000 Fixed Overhead Spending Variance Fixed Overhead Production-Volume Variance 500 Fixed Overhead Control 44,500 O D. Fixed Overhead Control 43,500 Accumulated Depreciation, etc. 43,500

Manama Company has budgeted its overhead costs for July 2020 as follows: budgeted $26,000 Actual $27,500 Variable manufacturing overhead costs Fixed manufacturing $43,500 $44,500 overhead costs It allocated fixed manufacturing overhead to work-in-process of $44,000. Variances for July were $1,000 unfavorable variable manufacturing overhead spending variance $1,000 unfavorable fixed manufacturing overhead spending variance. $500 favorable fixed manufacturing overhead production-volume variance What is the correct journal entry to record fixed manufacturing overhead costs and their variances. O A. WIP 43,500 Fixed Overhead Control 43,500 O B. Fixed Overhead Control 44,500 Fixed Overhead Production-Volume Variance 500 1,000 Fixed Overhead Spending Variance Fixed Overhead Allocated 44,000 O C. Fixed Overhead Allocated 44,000 1,000 Fixed Overhead Spending Variance Fixed Overhead Production-Volume Variance 500 Fixed Overhead Control 44,500 O D. Fixed Overhead Control 43,500 Accumulated Depreciation, etc. 43,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Manama Company has budgeted its overhead costs for July 2020 as follows: budgeted $26,000 Actual $27,500 Variable manufacturing overhead costs Fixed manufacturing $44,500 $43,500 overhead costs It allocated fixed manufacturing overhead to work-in-process of $44,000. Variances for July were $1,000 unfavorable variable manufacturing overhead spending variance $1,000 unfavorable fixed manufacturing overhead spending variance. $500 favorable fixed manufacturing overhead production-volume variance What is the correct journal entry to record fixed manufacturing overhead costs and their variances. O A. WIP 43,500 Fixed Overhead Control 43,500 O B. Fixed Overhead Control 44,500 Fixed Overhead Production-Volume Variance 500 1,000 Fixed Overhead Spending Variance Fixed Overhead Allocated 44,000 O C. Fixed Overhead Allocated 44,000 1,000 Fixed Overhead Spending Variance Fixed Overhead Production-Volume Variance 500 Fixed Overhead Control 44,500 O D. Fixed Overhead Control 43,500 Accumulated Depreciation, etc. 43,500
Transcribed Image Text:Manama Company has budgeted its overhead costs for July 2020 as follows: budgeted $26,000 Actual $27,500 Variable manufacturing overhead costs Fixed manufacturing $44,500 $43,500 overhead costs It allocated fixed manufacturing overhead to work-in-process of $44,000. Variances for July were $1,000 unfavorable variable manufacturing overhead spending variance $1,000 unfavorable fixed manufacturing overhead spending variance. $500 favorable fixed manufacturing overhead production-volume variance What is the correct journal entry to record fixed manufacturing overhead costs and their variances. O A. WIP 43,500 Fixed Overhead Control 43,500 O B. Fixed Overhead Control 44,500 Fixed Overhead Production-Volume Variance 500 1,000 Fixed Overhead Spending Variance Fixed Overhead Allocated 44,000 O C. Fixed Overhead Allocated 44,000 1,000 Fixed Overhead Spending Variance Fixed Overhead Production-Volume Variance 500 Fixed Overhead Control 44,500 O D. Fixed Overhead Control 43,500 Accumulated Depreciation, etc. 43,500
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