A Company Uses Job-Order Costing

question 54

Multiple Choice

A company uses job-order costing.At the end of the year,applied factory overhead costs were $10,000 and actual factory overhead costs were $12,000.The company uses the immediate write-off method to dispose of variances.What journal entry is necessary under the immediate write-off method?

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Definitions:

Facility Closed

The process or state of shutting down operations and ceasing activities in a particular building or location.

Laid Off

It denotes the termination of employment by an employer against the wishes of the employee, often due to economic downturns or company restructuring.

Survivor Syndrome

Emotional and psychological effects experienced by employees who remain in an organization after significant layoffs or restructurings, often including guilt or increased stress.

The Glass Ceiling

A metaphor referring to an invisible barrier that stops the career advancement of women and minorities, especially to top leadership positions.