What Is the Typical Treatment of Large Year-End Balances in the Variance

Multiple Choice

What is the typical treatment of large year-end balances in the variance accounts?

A) Recalculate all standard costs,and adjust to the actual basis for external financial reporting purposes
B) Close to cost of goods of sold
C) Prorate the direct material and labor variances across cost of goods sold,work in process and finished goods inventories
D) Prorate the variances across the raw materials,work in process,and finished goods inventories
E) b and c above