Ryan, IncPurchased a Delivery Truck with a $48,000 List Price

question 219

Multiple Choice

Ryan, Inc.purchased a delivery truck with a $48,000 list price.The company was given a $4,800 cash discount by the dealer and paid $2,400 sales tax.Annual insurance on the truck is $1,200.As a result of the purchase, by how much will Ryan, Inc.increase its truck account?

• A)$48,000
• B)$43,200
• C)$46,800
• D)$45,600

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual and the budgeted or standard cost of variable overheads based on the efficient usage of the business resources.

Total Variable Overhead Spending Variance

The variance between real variable overhead expenses and the anticipated expenses, which are determined using standard rates and the actual levels of production.

Variable Manufacturing Overhead

Indirect manufacturing costs that vary with production volume, such as utilities for the manufacturing plant or raw material handling costs.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard cost expected for the actual production volume.