Brodie Co Uses a Standard Job Cost System and a Denominator

question 117

Multiple Choice

Brodie Co. uses a standard job cost system and a denominator volume of 25,000 direct labour hours for allocating overhead. The actual output was 12,000 units, which cost $185,700 for direct labour (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 fixed overhead variances includes a:

• A) Credit to work in process for $120,000
• B) Debit to fixed overhead control for $125,000
• C) Debit to Cost of Goods Sold for $16,400
• D) Debit to the fixed overhead production volume variance for $5,000

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Definitions:

AW Clutch

A component in automatic transmissions designed to engage and disengage power flow, facilitating gear changes.

Engine Flywheel

A rotating mechanical device mounted on the engine crankshaft to store rotational energy, helping to maintain engine smoothness and driveability.

Clutch Pack

An assembly of multiple friction discs and steel plates in an automatic transmission that engage and disengage drive.

Clutch Pack

A component of an automatic transmission consisting of multiple discs and plates that engage and disengage to change gears.