Use the Following Information to Answer the Following Questions

question 89

Multiple Choice

Use the following information to answer the following Questions
Bannister Motors Corporation reported the following variances for the period just ended:
Variable-overhead spending variance: $50,000U
Variable-overhead efficiency variance: $28,000U
Fixed-overhead budget variance: $70,000U
Fixed-overhead volume variance: $30,000U

-If Bannister prepared an overhead cost performance report, which of these overhead variances is likely to be excluded from the report?

• A) Variable-overhead spending variance.
• B) Variable-overhead efficiency variance.
• C) Fixed-overhead budget variance.
• D) Fixed-overhead volume variance.
• E) None of the variances would be excluded.

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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.

Yield to Maturity

The anticipated full income on a bond, provided it is held through to its expiration date.

Interest Rate Risk

The risk of losing money on investments because of changes in interest rates.

Zero Coupon Bond

A debt security that does not pay periodic interest (coupon) payments and is instead issued at a substantial discount to its face value, with the return being the difference between the purchase price and the face value at maturity.