The Proration Method of Disposing of Overhead Variances Assigns the Variance

question 104

Multiple Choice

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to_____.

• A)WIP Inventory, Finished Goods Inventory, and Direct Materials Inventory
• B)Cost of Goods Sold, WIP Inventory, and Direct Materials
• C)Direct Materials Inventory and WIP Inventory
• D)Cost of Goods Sold, WIP Inventory, and Finished Goods Inventory

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Definitions:

Vice President

An officer in government or business who is below a president in rank, responsible for specific departments or functions.

Plant Managers

Individuals responsible for overseeing the operations of a manufacturing facility or plant, ensuring efficient production processes.

Direct Operating Expenses

Costs directly associated with the operation of a business, such as wages and materials, but excluding indirect expenses like administrative costs.

Operating Expenses

Operating expenses refer to the costs associated with the day-to-day functioning of a business, excluding direct production costs but including things like rent, utilities, and payroll.