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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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

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
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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