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

question 87

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 fixed overhead volume variance is:

• A) $17,856 U
• B) $2,856 F
• C) $17,856 F
• D) $2,856 U

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Definitions:

Risk Of Loss

Refers to the accountability for the damage or loss of goods, typically determined by the terms of sale or agreement.

Seller

An individual or entity that offers a product or service for sale to a buyer.

UCC

Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Merchant Status

A legal designation for individuals or entities engaged in the sale of goods, which subjects them to specific regulatory statutes and obligations under the Uniform Commercial Code.