Question

U lu di stuttenng -- Saved The overhead cost variance is:

Answer 1

Solution 1:

Overhead cost variance is "The difference between the actual overhead incurred during a period and standard overhead applied"

Hence 2nd option is correct.

Solution 2:

The entry to charge Work in process inventory for the standard material cost during the period and to record the direct material variances in the accounts would include all of the following except "A debit to cost of goods sold for $230"

Hence last option is correct.

Solution 3:

Standard cost of variable overhead = 24000 * $6 = $144,000

Actual variable overhead = $150,000

Total variable overhead variance = Standard cost - Actual cost = $144,000 - $150,000 = $6,000 U

Hence 2nd option is correct.