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:

Credit Entries

Entries made on the right side of an account in double-entry bookkeeping, indicating an increase in liabilities, revenue, or equity, or a decrease in assets.

Revenues

The total income generated by a company from its normal business activities, often from the sale of goods and services to customers.

Cash Receipts

These are the amounts of money received by a company during a specific period, including all forms of cash inflow from operations, financing, and investing activities.

Cash Payments

Transactions in which payment for goods or services is made in cash at the time of the transaction.