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

question 196

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?

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

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Definitions:

Literacy

Literacy is the ability to read and write at a level that enables communication, understanding, and participation in society, encompassing a range of skills from basic to advanced levels of comprehension and expression.

Memorialize

To memorialize something is to commemorate or honor it in a lasting way, often through a physical symbol or a solemn ceremony.

Cultural Relativism

A belief that cognitive practices, beliefs, competences, and capacities differ from culture to culture, depending on the tasks and contexts specific to a culture.

Cognitive Processes

The mental actions or operations involved in acquiring knowledge and understanding through thought, experience, and the senses.