Which method of closing out the fixed MOH volume variance will have no effect on the financial statements, no matter the capacity used? Question options: a) Prorating the fixed MOH volume variance to FG inventory and COGS. b) Allocating the fixed MOH volume variance equally among WIP Inventory, FG inventory and COGS. c) Prorating the fixed MOH volume variance to WIP Inventory, FG inventory and COGS. d) Allocating the fixed MOH volume variance to COGS.
Which method of closing out the fixed MOH volume variance will have no effect on the financial statements, no matter the capacity used? Question options: a) Prorating the fixed MOH volume variance to FG inventory and COGS. b) Allocating the fixed MOH volume variance equally among WIP Inventory, FG inventory and COGS. c) Prorating the fixed MOH volume variance to WIP Inventory, FG inventory and COGS. d) Allocating the fixed MOH volume variance to COGS.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5MC: This variance is the difference involving spending less, or using less than the standard amount. A....
Related questions
Question
Which method of closing out the fixed MOH volume variance will have no effect on the financial statements, no matter the capacity used?
Question options:
a)
Prorating the fixed MOH volume variance to FG inventory and COGS.
b)
Allocating the fixed MOH volume variance equally among WIP Inventory, FG inventory and COGS.
c)
Prorating the fixed MOH volume variance to WIP Inventory, FG inventory and COGS.
d)
Allocating the fixed MOH volume variance to COGS.
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