The Following Table Shows the Market Value Balance Sheet of a Failed

question 112

Multiple Choice

The following table shows the market value balance sheet of a failed bank ($ millions) : $$\begin{array} { | l | l | l | l | } \hline \text { Assets } & 400 & \text { Insured Deposits } & \$ 200 \\\hline & & \text { Uninsured Deposits } & \$ 400 \\\hline\end{array}$$ If the insured depositor transfer resolution method is utilized, what is the cost to insured depositors of bank failure resolution?

• A)$0.
• B)-$200 million.
• C)$67 million.
• D)$133 million.
• E)$200 million.

---

Definitions:

Fixed Overhead Volume Variance

A financial metric that measures the difference between the budgeted and actual fixed overhead costs, influenced by changes in production volume.

Productive Capacity

The maximum output that a business can produce in a given period under normal conditions, considering its resources.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Variable Overhead Spending Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard costs.