Genesis Company Genesis Company Uses a Standard Cost System for Its

question 219

Multiple Choice

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Genesis produced 5,000 units:
Refer to Genesis Company. Using the three-variance approach, what is the volume variance?

• A) $ 750 F
• B) $ 750 U
• C) $1,000 U
• D) $1,000 F

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Definitions:

General Fund

A main operating fund in governmental accounting, covering most basic services and activities.

Direct Increase

An increase in the value or quantity of an asset or account directly due to additional investments or improvements, rather than through earnings.

Capital Assets

Long-term assets acquired for use in business operations, expected to be used or held for more than one financial period.

Capitalized

Costs that are recognized as part of an asset on the balance sheet rather than being expensed, often related to the acquisition or construction of a long-term asset.