Use the Following Information and the Indirect Method to Calculate

question 53

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

• A)$69,900.
• B)$108,900.
• C)$93,900.
• D)$85,700.
• E)$81,600.

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Definitions:

Variable Overhead

Costs that fluctuate with the level of production or service delivery, such as utilities or raw materials.

Total Overhead Variance

The difference between the actual overhead incurred and the standard overhead allocated for the actual production achieved.

Labor Price Variance

The difference between the actual cost of direct labor and the standard cost, reflecting the variance in wages paid.

Direct Material Cost

The cost of raw materials and components that are directly used in the production of a product.