Pippin Inc

question 229

Multiple Choice

Pippin 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 June:
The variable overhead efficiency variance for the month is closest to:

• A) $2,450 F
• B) $2,400 U
• C) $2,400 F
• D) $2,450 U

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Definitions:

Excise Tax

A tax directly levied on certain goods, commodities, and activities, such as alcohol, tobacco, and gasoline, often intended to discourage their use or generate revenue.

Fried Twinkies

A deep-fried snack made from an American Twinkie cake, often found at fairs and festivals as an example of indulgent carnival food.

Tax Rate

The percentage at which an individual or corporation is taxed.

Incidence

Of a tax, a measure of who really pays a tax.