When Using a Standard Costing System,which of the Following Should

question 42

Multiple Choice

When using a standard costing system,which of the following should be recorded when invoices are received for variable overhead costs?

• A)Debit manufacturing overhead for the actual overhead costs and credit accounts payable or cash for the actual amount invoiced
• B)Debit work in process inventory for the actual overhead costs and credit accounts payable or cash using a predetermined variable overhead rate
• C)Credit manufacturing overhead for actual overhead rate and debit work in process inventory using a predetermined variable overhead rate
• D)Credit work in process inventory for the actual overhead and debit accounts payable or cash using a predetermined variable overhead rate

---

Definitions:

Seller's Bank

A financial institution that represents the seller in a transaction, particularly in international trade, by handling the receipt and processing of payment.

Agent for Collection

An individual or entity appointed to gather or receive payments on behalf of another.

Tender Delivery

The process of submitting goods for acceptance under the terms of a contract, specifically in a manner that conforms to the agreement's requirements.

Reasonable Hours

A period deemed acceptable or typical for work, activity, or operation, often within the context of employment or service provision.