Emerging Dock Company Manufactures Boat Docks on an Assembly Line

question 58

Multiple Choice

Emerging Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.

Which of the following journal entries records the total conversion costs variances of the Assembly Department, assuming that conversion costs are 15% higher than expected?

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Definitions:

Free Press

The unregulated and uncensored dissemination of news and information through various media outlets, considered essential for a democratic society.

Spontaneous

Occurring without apparent external cause, prompt, or planning.

Technology

The use of scientific understanding for real-world applications, particularly in the fields of industry and daily activities.

Flash Mob

A large group of people who assemble suddenly in a public place, perform an unusual act for a brief time, then quickly disperse, often organized via telecommunications or social media.