Fluegge Incorporated Has Provided the Following Data Concerning One of the Products

question 182

Multiple Choice

Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for December:
The variable overhead rate variance for the month is closest to:

• A) $1,080 Unfavorable
• B) $1,080 Favorable
• C) $1,148 Unfavorable
• D) $1,148 Favorable

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Definitions:

Equity

The value of an asset after deducting the cost of liabilities, representing the owner's interest in a company.

Investing Activities

Investing activities are financial transactions related to the acquisition or disposal of long-term assets and other investments not considered cash equivalents, as detailed in the statement of cash flows.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the company, as reported in the statement of cash flows.

Accounts Payable

A company's financial liability to its suppliers or creditors for received goods and services.