January 1, 2020, Assembly System Corporation's Retained Earnings Account Had

question 49

Multiple Choice

January 1, 2020, Assembly System Corporation's Retained Earnings account had a balance of$675,000. During 2020, cash dividends of $25,000 and stock dividends with a market value of $55,000 were declared and distributed. Assembly System Corporation had a net loss of $5,000 in
2020. What is the balance in Retained Earnings that would appear on Assembly System
Corporation's statement of shareholders' equity on December 31, 2020?

• A) $590,000
• B) $595,000
• C) $615,000
• D) $670,000

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Definitions:

Variable Overhead Efficiency Variance

The difference between actual variable overhead and the standard cost, reflecting efficiency in using resources that vary with production volume.

July

The seventh month of the year in the Gregorian calendar, often associated with the peak of summer in the Northern Hemisphere.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs and the expected costs based on the standard variable overhead rate.

Planning Budget

A budget created for a particular period or project that estimates revenues, expenses, and other financial details ahead of time.