The Following Standards for Variable Manufacturing Overhead Have Been Established

question 145

Multiple Choice

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month:
What is the variable overhead efficiency variance for the month?

• A) $15,550 U
• B) $15,200 U
• C) $16,530 U
• D) $980 F

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Definitions:

Discount on Bonds Payable

The discrepancy between a bond's nominal value and its market price when the bond is sold below its nominal value.

Journal Entry

A record of a financial transaction in an accounting system, consisting of debits and credits to maintain the double-entry accounting.

Discount on Bonds Payable

The gap between the nominal value of a bond and the price it is sold at when this price is lower than the bond's nominal value.

Redeems

The act of repaying or buying back something, such as a company repurchasing its own shares or a bond issuer paying back the principal at maturity.