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

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Definitions:

Buffer

A solution that resists changes in pH when acid or alkali is added to it, maintaining a relatively stable pH.

Polysaccharide

A complex carbohydrate composed of long chains of monosaccharide units bound together, serving as energy stores or structural components in living organisms.

High Heat Capacity

The property of a substance that allows it to absorb a considerable amount of heat without undergoing a significant change in temperature.

Carbonic Acid

A weak acid formed in solution when carbon dioxide dissolves in water.