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The Proration Method of Disposing of Overhead Variances Assigns the Variance

Question 68

Multiple Choice

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to


A) WIP and finished goods inventory.
B) cost of goods sold and WIP inventory.
C) direct materials and WIP inventory.
D) cost of goods sold, WIP and finished goods inventory.

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