Reference no: EM133186998

Question - Jameson Company has recorded the following journal entries one it identified various types of overhead variances during the period:

Variable overhead efficiency variance 2000

Fixed overhead budget variance 1000

Variable overhead spending variance 1500

Fixed overhead volume variance 500

Manufacturing overhead control 1000

Which of the following interpretations in not correct?

A) Total fixed overhead variance during the period was unfavorable.

B) Overhead cost was over-applied during the period.

C) Jameson's production capacity was over-utilized during the period.

D) After closing all variance accounts above, the cost of goods sold will be increased.