Viger Corporation Has a Standard Cost System in Which It

question 229

Multiple Choice

Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company has provided the following data for the most recent month: What was the variable overhead rate variance for the month?

• A) $2,000 Favorable
• B) $720 Favorable
• C) $1,260 Unfavorable
• D) $1,980 Favorable

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Definitions:

Liability Accounts

Financial obligations or debts of a business that are recorded on its balance sheet.

Asset Accounts

These accounts record resources owned or controlled by a company that have economic value and can provide future benefits.

Debit Side

The left side of a T-account, used for recording increases in assets and expenses or decreases in liabilities, equity, and income.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and revenues or decreases in assets and expenses are recorded.