Figure 11-1

question 43

Multiple Choice

Figure 11-1. Jason,Inc.produces leather purses.Jason has developed a static budget for the first quarter,based on 20,000 direct labor hours.During the quarter,the actual activity was 22,000 direct labor hours.Data for the first quarter are summarized as follows:
Refer to Figure 11-1.What is the flexible budget variance for the first quarter?

• A)$1,000 U
• B)$23,000 U
• C)$23,000 F
• D)$1,000 F
• E)none of these

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Definitions:

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, ensuring the debits equal the credits.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Compound Interest

This approach to interest calculation includes both the initial principal amount and the compounded interest from earlier stages of a deposit or borrowing.

Bonds Payable

Long-term liabilities representing money a company must pay back to bondholders, typically including principal and interest.