The Proration Method of Disposing of Overhead Variances Assigns the Variance

Multiple Choice

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances of ________.

A) work-in-process inventory, finished goods inventory and direct materials inventory
B) work-in-process inventory, direct materials inventory and cost of goods sold
C) work-in-process inventory and direct materials inventory
D) work-in-process inventory, finished goods inventory and cost of goods sold