The Entry to Record Total Manufacturing Overhead Applied Would Be

question 14

Multiple Choice

The entry to record total manufacturing overhead applied would be

• A) Overhead Control XX
• Work in Progress XX
• B) Finished Goods Inventory XX
• Work in Progress XX
• C) Work in Progress XX
• Overhead Control XX
• D) Overhead Control XX
• Accounts Payable XX

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Definitions:

Direct Labor Wage

The compensation workers receive for directly contributing to the manufacturing or production of goods, usually an hourly wage or per unit produced rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production level.

Variable Manufacturing Overhead

Costs that vary with production volume, such as utilities and materials used in the production process.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (standard) overhead based on the efficient use of resources.