Termeer Inc

question 243

Multiple Choice

Termeer Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for August:
The variable overhead rate variance for the month is closest to:

• A) $480 F
• B) $480 U
• C) $476 U
• D) $476 F

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Definitions:

Temporary Possession

The condition of holding or controlling property or goods for a limited period without claiming ownership.

Chattel

Assets that can be physically relocated, unlike immovable real estate or land.

Bailment

Temporary possession by one person of chattels owned by another.

Bailment Period

The duration during which personal property is legally entrusted to someone who is not the owner, under a contract for a specific purpose.