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Brandon's Basketball Manufacturing Company Reported To Isolate These Variances at the End of the Accounting

Question 87

Multiple Choice

Brandon's Basketball Manufacturing Company reported:
 Actual fixed overhead $1000000 Fixed manufacturing overhead spending variance $60000 unfavourable  Fixed manufacturing production-volume variance $40000 unfavourable \begin{array}{ll}\text { Actual fixed overhead } & \$ 1000000 \\\text { Fixed manufacturing overhead spending variance } & \$ 60000 \text { unfavourable } \\\text { Fixed manufacturing production-volume variance } & \$ 40000 \text { unfavourable }\end{array}

To isolate these variances at the end of the accounting period,Brandon would:


A) debit Fixed Manufacturing Overhead Spending Variance for $60 000.
B) credit Fixed Manufacturing Control Allocated for $900 000.
C) credit Fixed Manufacturing Production-Volume Variance for $40 000.
D) debit Fixed Manufacturing Overhead Allocated for $1 000 000.

Correct Answer:

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