Stopyra Incorporated Makes a Single Product-A Cooling Coil Used in Commercial

question 40

Multiple Choice

Stopyra Incorporated makes a single product-a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The variable overhead efficiency variance is:

• A) $1,645 F
• B) $2,121 U
• C) $2,121 F
• D) $1,645 U

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Definitions:

Obsolescence

The process of becoming outdated or no longer used, often due to technological advances.

Credit Standards

The criteria and measures used by lenders to determine the creditworthiness of potential borrowers.

Bad-Debt Losses

Financial losses that occur when borrowers fail to pay back their loans.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.