Brodie Co Uses a Standard Job Cost System and a Denominator

question 10

Multiple Choice

Brodie Co. uses a standard job cost system and a denominator volume of 25,000 direct labor hours for allocating overhead. The actual output was 12,000 units, which cost $185,700 for direct labor (23,000 hours) , $27,525 for variable overhead, and $136,400 for fixed overhead. The standard variable overhead per unit is $2 (2 hours @ $1 per hour) , and the standard fixed overhead per unit is $10 (2 hours @ $5 per hour) . All variances are immaterial and are closed to Cost of Goods Sold at the end of the period. The entry to close the variable overhead variances includes a

• A) Credit to the variable overhead spending variance for $4,525
• B) Credit to work in process for $24,000
• C) Credit to the variable overhead efficiency variance for $1,000
• D) Debit to Cost of Goods Sold for $5,525

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Definitions:

Nonverbal Test

An assessment tool that measures intelligence or ability without relying on language-based responses, often used with individuals who have language processing difficulties or are non-native speakers.

Verbal Ability

The capacity to use language effectively, including understanding, interpreting, and generating spoken and written communication.

Numerical Ability

The capacity to understand, manipulate, and reason with numbers and mathematical concepts, often assessed in educational and occupational settings.

Standards

Established norms or criteria against which the quality, performance, or compliance of a product, service, or process is measured.