Brodie Co Uses a Standard Job Cost System and a Denominator

Multiple Choice

Brodie Co. uses a standard job cost system and a denominator volume of 25,000 direct labour hours for allocating overhead. The actual output was 12,000 units, which cost $185,700 for direct labour (23,000 hours) , $27,525 for variable overhead, and $136,400 for fixed overhead. The standard variable overhead per unit is $2 (2 hours @ $1 per hour) , and the standard fixed overhead per unit is $10 (2 hours @ $5 per hour) . All variances are immaterial and are closed to Cost of Goods Sold at the end of the period.
The entry to close the fixed overhead variances includes a:

A) Credit to work in process for $120,000
B) Debit to fixed overhead control for $125,000
C) Debit to Cost of Goods Sold for $16,400
D) Debit to the fixed overhead production volume variance for $5,000