During the Period Cash Spinner Produced 2,000 Units of Product

question 140

Multiple Choice

During the period Cash Spinner produced 2,000 units of product. The flexible budget for standard costs is: $\begin{array} { l r } \quad\quad\text { Direct materials } & \$ 43,000 \\\quad\quad\text { Direct labor } & 67,000 \\\quad\quad\text { Variable overhead } & 30,000 \\\quad\quad\text { Fixed overhead } & 25,000 \\\text { Variances for the period are: } & \\\quad\quad\text { Direct materials price } & \$ 400 \mathrm { U } \\\quad\text { Direct materials efficiency } & 500 \mathrm {~F} \\\quad\text { Direct labor price } & 600 \mathrm {~F} \\\quad\text { Direct labor efficiency } & 200 \mathrm { U } \\\quad\text { Variable overhead spending } & 300 \mathrm {~F} \\\quad\text { Variable overhead efficiency } & 100 \mathrm {~F} \\\quad\text { Fixed overhead spending } & 500 \mathrm {~F} \\\quad\text { Fixed overhead production volume } & 1,000 \mathrm { U }\end{array}$

The direct materials inventory increased during the period by 500 (at standard cost) . The budgeted fixed overhead was:

• A) $24,000
• B) $25,000
• C) $24,500
• D) $23,000

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Definitions:

Self-Incrimination

The act of implicating oneself in a crime, which is protected against by the Fifth Amendment in the United States Constitution.

Defense of Others

A legal justification for using reasonable force to protect another person from harm or danger.

Deadly Force

The use of force that is likely to result in serious bodily harm or death, often discussed in law enforcement and self-defense contexts.

Unloaded Gun

A firearm that does not contain any ammunition in its chamber or magazine.