Which of the Following Accounts Are Debited When Closing Entries

question 16

Multiple Choice

Which of the following accounts are debited when closing entries are made for the general fund (assume outstanding encumbrances lapse at year-end) ?

• A) I, II, III, VI.
• B) I, II, IV.
• C) I, IV, V, VI.
• D) III, IV, V.

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Definitions:

Variable Overhead Rate Variance

The difference between actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.

Fixed Manufacturing Overhead Budget Variance

The discrepancy between the budgeted fixed overhead costs and the actual fixed overhead incurred during production.

Fixed Manufacturing Overhead Volume Variance

The difference between the budgeted and actually applied fixed manufacturing overhead, based on standard costs for a given period.

Fixed Overhead Budget Variance

The difference between actual fixed overhead costs and the budgeted or expected fixed overhead costs.