BressmanIncorporated Has Provided the Following Data Concerning One of the Products

question 98

Multiple Choice

BressmanIncorporated 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 efficiency variance for the month is closest to:

• A) $268 Unfavorable
• B) $268 Favorable
• C) $276 Favorable
• D) $276 Unfavorable

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Definitions:

Factory Insurance

Refers to a type of insurance policy designed to cover risks associated with factory operations, such as damage to premises, machinery, and loss due to business interruption.

Manufacturing Cost

The total expense incurred in the process of producing goods, including materials, labor, and overhead.