Zebb Company Developed the Following Reconciling Information in Preparing Its

question 9

Multiple Choice

Zebb Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{llcc} \text {Cash balance per bank, 9 / 30 } &\$12,000 \\ \text {Note receivable collected by bank } &6,000\\ \text { Outstanding checks } &9,000\\ \text {Deposits in transit } &4,500\\ \text {Bank service charge } &75\\ \text { NSF check } &1,200\\\end{array}$

Determine the cash balance per books (before adjustments) for Zebb Company.

• A)$8,775.
• B)$16,500.
• C)$2,775.
• D)$12,000.

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Definitions:

Variable Overhead

The costs that fluctuate with the level of production or business activity, such as utilities or materials.

Variable Costing

A pricing approach that incorporates only those production expenses that vary—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of products.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding production costs but including items like rent, utilities, and payroll.