If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable,

Question

3 years ago

11

If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable,

the journal entry will include a: _________
a. Debit to variable overhead efficiency variance
b. Credit to variable overhead efficiency variance
c. Debit to variable overhead spending variance
d. Credit to variable overhead spending variance

Business

1 answer:

Vera_Pavlovna [14] · Answer 1 · 2022-09-01T00:52:53+03:00

Answer:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending varian

Explanation:

Based on the information given in a situation where a variable overhead efficiency variance is UNFAVORABLE it will be DEBITED and variable overhead spending variance that is FAVOURABLE will be CREDITED.

Therefore the journal entry will include a:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending Variance