A Company Has a Favorable Variable Overhead Spending Variance,an Unfavorable

question 138

Multiple Choice

A company has a favorable variable overhead spending variance,an unfavorable variable overhead efficiency variance,and underapplied variable overhead at the end of a period.The journal entry to record these variances and close the variable overhead control account will show which of the following? $\begin{array}{lll}\mathrm{VOH} \text { spending } & \text { VOH efficiency } &\\\underline{\text{variance }} &\underline{\text{variance }} & \underline{\text{VMOH }}\end{array}$

• A)debit credit credit
• B)credit debit credit
• C)debit credit debit
• D)credit debit debit

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Definitions:

Standard Error

A statistical measure that quantifies the variability or dispersion of a sample statistic from the population parameter it estimates.

Population Distribution

A term that describes how the values of a variable are distributed across an entire population.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Normal Distribution

A bell-shaped curve distribution that is symmetrical around the mean, where the bulk of the values lie near the center and it tails off towards the extremes.