Atlantic Manufacturing Company uses standard costing methodology in their journal entries and accounts. They are ready to close out their Manufacturing overhead account for the month. The T-account for overhead is shown below:

\begin{array} { r | l } { \text { Manufacturing overhead } } \\\hline 95,000 & 93,000\end{array}

In addition to the above, Atlantic calculated the following overhead variances:
Variable overhead: Spending (price) variance: $5,000 F
Efficiency variance: $4,850 U
Fixed overhead: Spending (price) variance: $1,200 F
Volume variance: $3,350 U
The journal entry to close out the overhead account and record the overhead variances would be:
A)

\begin{array} { | l | r | r | } \hline \text { Variable overhead spending variance } & 5,000 & \\\hline \text { Fixed overhead spending variance } & 1,200 & \\\hline \text { Manufacturing overhead } & 2,000 & \\\hline \text { Variable overhead efficiency variance } & & 4,850 \\\hline \text { Fixed overhead volume variance } & & 3,350 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Fixed overhead efficiency variance } & 4,850 & \\\hline \text { Fixed overhead volume variance } & 3,350 & \\\hline \text { Variable overhead spending variance } & & 5,000 \\\hline \text { Variable overhead efficiency variance } & & 1,200 \\\hline \text { Manufacturing overhead } & & 2,000 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Variable overhead spending variance } & 5,000 & \\\hline \text { Fixed overhead spending variance } & 1,200 & \\\hline \text { Manufacturing overhead } & 2,000 & \\\hline \text { Fixed overhead volume variance } & & 4,850 \\\hline \text { Variable overhead efficiency variance } & & 3,350 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Variable overhead efficiency variance } & 4,850 & \\\hline \text { Fixed overhead volume variance } & 3,350 & \\\hline \text { Variable overhead spending variance } & & 5,000 \\\hline \text { Fixed overhead spending variance } & & 1,200 \\\hline \text { Manufacturing overhead } & & 2,000 \\\hline\end{array}

Which of the Following Will Result in an Unfavorable Direct

Multiple Choice

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