Ask Question
27 April, 18:24

At the end of the period, the balance left in the factory overhead account is equal to the

a. factory overhead adjustment variance.

b. variable factory overhead controllable variance.

c. fixed factory overhead volume variance.

d. total factory overhead cost variance.

+5
Answers (1)
  1. 27 April, 20:51
    0
    d. total factory overhead cost variance.

    Explanation:

    In manufacturing accounting, at the beginning of the period, manufacturing overheads (i. e. costs other than Direct Material and Direct Labor) has been applied to Work-in-process using a predetermined overhead rate. At the end of the period, if the manufacturing overhead account shows a debit balance, that signifies that overhead has been under-applied (i. e. the manufacturing overhead cost applied to work in process is less than the actual manufacturing overhead cost for the period), and contrariwise if the manufacturing overhead account shows a credit balance, it means the overhead is over-applied (i. e. the manufacturing overhead cost applied to work in process is more than the actual manufacturing overhead cost for the period). In any case this balance warrants an adjustment to close out the books, by transferring it to the cost of goods sold account.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “At the end of the period, the balance left in the factory overhead account is equal to the a. factory overhead adjustment variance. b. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers