Bismith Company Reported To Record the Write-Off of These Variances at the End

question 24

Multiple Choice

Bismith Company reported: $\begin{array}{ll}\text { Actual fixed overhead } & \$ 500,000 \\\text { Fixed manufacturing overhead spending variance } & \$ 30,000 \text { favorable }\\\text { Fixed manufacturing production-volume variance }& \$ 20,000 \text { unfavorable }\\\end{array}$ To record the write-off of these variances at the end of the accounting period,Bismith would ________.

• A) credit Fixed Manufacturing Overhead Allocated for $500,000
• B) debit Fixed Manufacturing Overhead Spending Variance for $30,000
• C) credit Fixed Manufacturing Production-Volume Variance for $20,000
• D) debit Fixed Manufacturing Control for $500,000

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Definitions:

Global

Pertaining to or involving the entire world; embracing all aspects of international relations, culture, and economic development.

Local Control

Pertains to the degree of authority and decision-making power retained at a local or regional level, as opposed to being centralized.

Job Sharing

When two or more employees perform the duties of one full-time position, each sharing the work activities on a part-time basis.

Temporary Layoffs

A situation where employees are suspended or laid off from their jobs for a period of time but are expected to return to their positions in the foreseeable future.