Sigorny Company Uses Standard Costing and Applies Overhead on the Basis

question 69

Multiple Choice

Sigorny Company uses standard costing and applies overhead on the basis of units produced.The company provided the following for July: $$\begin{array} { l r } \text { Predetermined overhead rate per unit produced } & \$ 6.20 \\\text { Budgeted fixed overhead } & \$ 12,600 \\\text { Variable overhead budgeted per unit } & \$ 2.00 \\\text { Actual units produced } & 3,100\end{array}$$ If the controllable overhead variance was $920 favorable in July, how much were total actual overhead costs?

• A)$17,880
• B)$18,800
• C)$19,220
• D)$19,720

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Stockholders' Equity

Represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth attributable to shareholders.

Stock Dividend

Distribution of additional shares of a company's stock to its shareholders instead of cash.