Excalibur Company Sells Equipment for $20,000 Cash

question 109

Multiple Choice

Excalibur Company sells equipment for $20,000 cash.The gain or loss on the sale of equipment equals:

• A)the cash received upon the sale.
• B)the book value of the equipment.
• C)the accumulated depreciation of the equipment plus the cash received from the sale.
• D)the difference between the cash received on sale and the book value of the equipment.

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Definitions:

Total Variable Overhead Variance

The difference between the actual variable overhead costs incurred and the expected (or budgeted) variable overhead costs.

Material Quantity Variance

A financial measurement that calculates the difference between the expected amount of materials and the actual amount used, affecting production costs and efficiency.

Material Price Variance

The difference between the actual cost of materials used to produce a product and the standard or expected cost.

Direct Material Variances

The difference between the actual cost of direct materials used in production and the standard cost, indicating efficiency in using materials.