Bade Midwifery's Cost Formula for Its Wages and Salaries Is

question 43

Multiple Choice

Bade Midwifery's cost formula for its wages and salaries is $1,250 per month plus $244 per birth. For the month of October, the company planned for activity of 105 births, but the actual level of activity was 101 births. The actual wages and salaries for the month was $26,915. The activity variance for wages and salaries in October would be closest to:

• A) $45 U
• B) $976 F
• C) $976 U
• D) $45 F

Calculate and interpret fixed and variable manufacturing overhead variances.

Identify and analyze the effects of direct labor cost variances.

Comprehend the financial implications of raw material price and quantity variances.

Process standard cost variances into cost of goods sold adjustments.

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Definitions:

Setting Standards

The process of establishing criteria or benchmarks that define expected levels of performance, quality, or conduct.

Corrective Action

Measures taken to fix a problem or nonconformity and to prevent its recurrence.

Controls

Mechanisms or regulations put in place to guide actions or processes towards desired outcomes in an organization.

Flexibility and Creativity

Flexibility and creativity are qualities that allow individuals or organizations to adapt to change and generate innovative solutions to problems.