The Proration Method of Disposing of Overhead Variances Assigns the Variance

question 74

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

---

Definitions:

Tactful

Showing sensitivity and consideration when dealing with difficult or delicate situations, often to avoid offense.

Claim Message

Communication that asserts a request for action or redress typically in the context of a business or legal matter.

Compensation

Payment or rewards given for services rendered or as reparation for loss or suffering.

Accusatory

Characterized by the action of accusing; implying blame or fault towards someone or something.