Tate Company makes the following journal entry:
$\begin{array}{lrr}
\text { Variable Manufacturing Overhead Allocated } & 150000 & \
\text { Variable Manufacturing Overhead Efficiency Variance } & 5000 & \
\quad \text { Variable Manufacturing Overhead Control } & & 125000 \
\text { Variable Manufacturing Overhead Spending Variance } && 30000
\end{array}$

A)A $25 000 favourable flexible-budget variance was recorded.
B)Tate under-allocated variable manufacturing overhead.
C)A $30 000 unfavourable spending variance was recorded.
D)Work-in-Process is currently understated.

Question

Tate Company makes the following journal entry:
$\begin{array}{lrr}
\text { Variable Manufacturing Overhead Allocated } & 150000 & \
\text { Variable Manufacturing Overhead Efficiency Variance } & 5000 & \
\quad \text { Variable Manufacturing Overhead Control } & & 125000 \
\text { Variable Manufacturing Overhead Spending Variance } && 30000
\end{array}$

A)A $25 000 favourable flexible-budget variance was recorded.
B)Tate under-allocated variable manufacturing overhead.
C)A $30 000 unfavourable spending variance was recorded.
D)Work-in-Process is currently understated.

Quizplus · Accepted Answer

The Answer of Tate Company makes the following journal entry:
$\begin{array}{lrr}
\text { Variable Manufacturing Overhead Allocated } & 150000 & \
\text { Variable Manufacturing Overhead Efficiency Variance } & 5000 & \
\quad \text { Variable Manufacturing Overhead Control } & & 125000 \
\text { Variable Manufacturing Overhead Spending Variance } && 30000
\end{array}$

A)A $25 000 favourable flexible-budget variance was recorded.
B)Tate under-allocated variable manufacturing overhead.
C)A $30 000 unfavourable spending variance was recorded.
D)Work-in-Process is currently understated.

Tate Company Makes the Following Journal Entry A)A $25 000 Favourable Flexible-Budget Variance Was Recorded