Jessep Corporation Has a Standard Cost System in Which Manufacturing

question 82

Multiple Choice

Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March: The fixed manufacturing overhead volume variance is:

• A) $3,000 U
• B) $3,000 F
• C) $9,000 U
• D) $6,000 U

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Definitions:

Liabilities

Financial obligations or debts that a business owes to others, which must be settled over time through the transfer of economic benefits.

Capitals

Financial assets or the financial value of assets, such as cash and securities, owned by a business.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Supplies

Materials or items which are used in the operation of a business or needed in the production process.