Use the Following End-Of-Period Spreadsheet to Answer the Questions That

question 192

Multiple Choice

Use the following end-of-period spreadsheet to answer the questions that follow.
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-Use the end-of-period spreadsheet for Finley Company. The expenses would be closed by

• A) debiting Wages Expense for $63,000, Rent Expense for $27,000, and Depreciation Expense for $15,000
• B) debiting Expenses for $105,000
• C) crediting Expenses for $105,000
• D) crediting Wages Expense for $63,000, Rent Expense for $27,000, and Depreciation Expense for $15,000

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Definitions:

Standard Cost Card

A document that lists the expected costs of materials, labor, and overhead associated with producing a particular product or performing a service.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard cost per unit.

Direct Labor Rate

The rate paid for the labor time per unit of work or hour worked by an employee directly involved in production.

Cost Drivers

Factors that cause the cost of an activity or process to change, affecting the overall cost of production.