A Cheque Written for $68

question 5

Multiple Choice

A cheque written for $68.30 in payment of an account was recorded on the books as $86.30. On a bank reconciliation, this will appear as a(n) :

• A)addition to the bank balance for $18.
• B)deduction from the bank balance for $18.
• C)addition to the book balance for $18.
• D)deduction from the book balance for $18.

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Definitions:

Variable Manuf. Overhead

Variable Manufacturing Overhead includes those manufacturing overhead costs that vary directly with the level of production, such as utilities for the production facility.

Actual Variable Manuf. Overhead

The actual amount incurred in variable overhead costs during manufacturing, contrasting with the budgeted or standard costs.

Direct Materials

Materials in their basic form that are specifically identifiable with the manufacturing of certain products or services.

Total Variance

The overall difference between the budgeted or standard cost figures and the actual figures.