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

question 216

Multiple Choice

Bressman 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 May:
The variable overhead rate variance for the month is closest to:

• A) $364 Unfavorable
• B) $372 Favorable
• C) $364 Favorable
• D) $372 Unfavorable

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Definitions:

Owner's Capital

The amount of equity a business owner has invested in their firm or the net assets belonging to the owner.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specified accounting period, facilitating the transfer of the net income or loss to owner's equity.

Withdrawals Account

A Withdrawals Account tracks the money or assets taken out of a business by its owner(s) for personal use, affecting the owner's equity balance.

Owner's Capital

The amount of equity belonging to the owner of a business, reflecting investments and accumulated earnings.