The Haney Corporation Has a Standard Costing System

question 85

Multiple Choice

The Haney Corporation has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January:Actual variable manufacturing overhead: $25,500Actual direct labor-hours worked: 5,800Variable overhead rate variance: $600 FavorableVariable overhead efficiency variance: $2,475 UnfavorableThe standard hours allowed for January production is:

• A) 5,975 hours
• B) 5,800 hours
• C) 5,425 hours
• D) 5,250 hours

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Definitions:

Note Payable-National Bank

A written promise to pay a specific sum of money, borrowed from a national bank, at a future date.

Carrying Value

Also known as the book value, it is the value of an asset on a company's balance sheet after accounting for depreciation, amortization, or impairment costs.

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans.

Debt Restructuring Gain

A financial benefit realized by modifying the terms of debt agreements, usually resulting in a reduction in the obligated repayment amount or an extension of payment terms.