Bulluck Corporation Makes a Product with the Following Standard Costs

question 221

Multiple Choice

Bulluck Corporation makes a product with the following standard costs: The company reported the following results concerning this product in July.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for July is:

• A) $2,100 U
• B) $2,420 F
• C) $2,100 F
• D) $2,420 U

---

Definitions:

Income Recognition

The accounting principle that income should be recognized in the accounting period in which it is earned.

Transaction

A financial operation between two parties involving an exchange or transfer of goods, services, or funds.

Social Security Income

Social Security Income (SSI) is a government program that provides financial assistance to individuals who are elderly, blind, or have disabilities, based on income needs.

Taxable Amount

The taxable amount is the portion of income or a financial transaction that is subject to taxes according to the laws and regulations of the tax jurisdiction.