UNIT 5 QUIZ
Question 10. Question : Which one of the following journal
entries in a standard cost
system would be used to apply factory overhead costs to
production?
Student Answer:
A debit to the factory overhead account, at standard cost.
A credit to the factory overhead account, at standard cost.
A debit to WIP inventory, at actual cost.
A credit to Finished Goods Inventory, at standard cost.
Question 11. Question : Which of the following factors is not
usually important when
deciding whether to investigate a variance?
Student Answer:
Magnitude of the variance.
Trend of the variance over time.
Whether the variance is favorable or unfavorable.
Cost of investigating the variance.
Likelihood that the variance will recur in the future.
Question 12. Question : The difference between total variable
overhead cost incurred and