Question

If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable, the journal entry will include a: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply Debit to variable overhead efficiency varianceunanswered Credit to variable overhead efficiency varianceunanswered Debit to variable overhead spending varianceunanswered Credit to variable overhead spending variance

Answer 1

Answer:

Dr Variable overhead efficiency variance

Cr Variable overhead spending variance

Explanation:

Preparation the journal entry

Based on the information given in a situation where the variable overhead efficiency variance is unfavorable with the amount of $500 which means that that UNFAVORABLE VARIANCE will be DEBITED and if the variable overhead spending variance is favorable with the amount of $100 which means that the FAVOURABLE VARIANCE will be CREDITED and below is the way the journal entry will be:

Dr Work in process inventory

Dr Variable overhead efficiency variance (UNFAVORABLE)

Cr Factory overhead

Cr Variable overhead spending variance (FAVORABLE)

Therefore the journal entry will include a:

Dr Variable overhead efficiency variance (UNFAVORABLE)

Cr Variable overhead spending variance(FAVORABLE)