Sigorny Company Uses Standard Costing and Applies Overhead on the Basis

question 6

Multiple Choice

Sigorny Company uses standard costing and applies overhead on the basis of units produced. The company provided the following for July: $\begin{array}{lr}\text { Predetermined overhead rate per unit produced } & \$ 6.20 \\\text { Budgeted fixed overhead } & \$ 12,600 \\\text { Variable overhead budgeted per unit } & \$ 2.00 \\\text { Actual units produced } & 3,100\end{array}$ How much is the budgeted variable overhead in July?

• A) $18,600
• B) $6,200
• C) $19,220
• D) $6,000

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Definitions:

Conflicting Interests

Situations where competing priorities or obligations cause a conflict for an individual or organization, potentially leading to ethical dilemmas.

Perfected

In legal terms, it refers to a state where an interest (such as a lien or security interest) is made legally enforceable and established in a manner that it has priority over the claims of others.

Collateral

Assets that are pledged as security for the repayment of a loan.

Debtor Defaults

Occurs when a debtor fails to meet the obligations of a loan or financial agreement.