Using the Legend Provided, Classify Each Statement Accordingly

question 57

Multiple Choice

Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2016.
-Premiums paid on key employee life insurance policy (assume no increase in cash surrender value of policy) in 2016.

• A)Increase
• B)Decrease
• C)No effect

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to a variation in produced or achieved volumes of goods.

Actual Hours

The real number of hours worked by employees, often used in comparing to budgeted or standard hours for performance analysis.

Standard Hours

The set amount of time expected for a task or job to be completed, often used in planning and efficiency analysis.

Units Produced

The total number of finished items or products created by a production process or manufacturing operation.