Please answer the following 4 questions. 1. Debiting Work in Process Inventory for $102,000 variable OH will result in: a. Decreasing Work in Pocess Inventory based on Actual Variable OH rate. b. Increasing Work in Pocess Inventory based on actual Variable OH rate. c. Decreasing Work in Pocess Inventory based on standard Variable OH rate. d. Increasing Work in Pocess Inventory based on standard Variable OH rate. 2. Debiting Variable Overhead Efficiency Variance means we had an unfavorable outcome. a. True b. False 3. Crediting Variable Overhead Spending Variance means we had an unfavorable outcome for Variable Overhead Spending Variance a. True b. False 4. We normally credit Factory Overhead to apply the actual cost to Overhead to the Work in Process a. True b.False
Please answer the following 4 questions. 1. Debiting Work in Process Inventory for $102,000 variable OH will result in: a. Decreasing Work in Pocess Inventory based on Actual Variable OH rate. b. Increasing Work in Pocess Inventory based on actual Variable OH rate. c. Decreasing Work in Pocess Inventory based on standard Variable OH rate. d. Increasing Work in Pocess Inventory based on standard Variable OH rate. 2. Debiting Variable Overhead Efficiency Variance means we had an unfavorable outcome. a. True b. False 3. Crediting Variable Overhead Spending Variance means we had an unfavorable outcome for Variable Overhead Spending Variance a. True b. False 4. We normally credit Factory Overhead to apply the actual cost to Overhead to the Work in Process a. True b.False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please answer the following 4 questions.
1. Debiting Work in Process Inventory for $102,000 variable OH will result in:
a. Decreasing Work in Pocess Inventory based on Actual Variable OH rate.
b. Increasing Work in Pocess Inventory based on actual Variable OH rate.
c. Decreasing Work in Pocess Inventory based on standard Variable OH rate.
d. Increasing Work in Pocess Inventory based on standard Variable OH rate.
2. Debiting Variable
a. True
b. False
3. Crediting Variable Overhead Spending Variance means we had an unfavorable outcome for Variable Overhead Spending Variance
a. True
b. False
4. We normally credit Factory Overhead to apply the actual cost to Overhead to the Work in Process
a. True
b.False
Transcribed Image Text:In the boxed areas provided, enter actual hours (or other application base), standard hours (or other application
base), actual amount spent on variable overhead, and the standard variable overhead rate. Variable factory overhead
variances will be automatically calculated, along with related journal entries. The initial values that are already
entered correspond to values used in the example in the textbook. Try alternative values and closely consider and
evaluate the changes to the variance calculations.
Enter the actual hours (or other application base) to achieve output >>>
Enter the standard hours (or other application base) to achieve output >>>>
Enter the actual amount spent on variable factory overhead >>>>
Enter the standard variable overhead rate >>>>
Work in Process Inventory
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance
Factory Overhead
Actual cost
105,000
Spending
Variance
20,000
To increase work in process for the standard variable overhead and record
the related efficiency and spending variances
-3,000
Total
variance
10
Actual use @
standard
12,500
125,000
102,000
23,000
BOE
10,200
10
12,500
105,000
102,000
10,200
Standard cost
-23,000
10
Efficiency
Variance
20,000
105,000
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