Use the Following Information for the Next 5 Questions

question 15

Multiple Choice

Use the following information for the next 5 questions.
During the period Richeleau produced 1,000 units of product. The flexible budget for standard costs is:
-The total under- or overapplied overhead for the period was

• A) $400 overapplied
• B) $500 underapplied
• C) $900 overapplied
• D) $100 underapplied

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Definitions:

Discount Recognized

The process of recording in the financial accounts the discount received or given on transactions, affecting the actual value recorded.

Periodic Inventory System

An inventory accounting practice where physical counts are performed at specific intervals to determine the cost of goods sold and ending inventory levels.

Voucher System

A method for processing accounts payable where a document (voucher) is prepared for every payable transaction, detailing the goods or services received, amounts to be paid, authorization, and accounts to be charged.

Net Method

An accounting method for recording purchases at the net of any trade discounts or rebate.