A Manufacturing Company Has a Standard Costing System Based on Standard

question 80

Multiple Choice

A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period:
The fixed manufacturing overhead budget variance for the period is closest to:

• A) $615 F
• B) $2,120 U
• C) $1,478 U
• D) $450 U

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Definitions:

Market Value

The market's current rate for transactions involving an asset or service.

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, where the issuer owes the holders a debt and is obliged to pay interest and/or to repay the principal at a later date, termed maturity.

Maturity

The date on which a financial obligation or investment becomes due for payment or is to be repaid in full.

Coupon Rate

The yield paid by a fixed-income security; a fixed percentage of the par value of the bond, paid to the investor annually or semi-annually.