The Nice Corporation Issues 8,000 Preference Shares with a of $100

question 104

Multiple Choice

The Nice Corporation issues 8,000 preference shares with a of $100 par value for cash at $110 per share.The entry to record the transaction will consist of a debit to Cash for $880,000 and a credit or credits to

• A)Preference Shares for $880,000.
• B)Share Premium-Preference Shares for $880,000.
• C)Preference Shares for $800,000 and Retained Earnings for $80,000.
• D)Preference Shares for $800,000 and Share Premium-Preference for $80,000.

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Definitions:

Fixed Manufacturing Overhead Budget Variance

The difference between the actual fixed manufacturing overhead costs and the budgeted fixed overhead costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to the variance in the volume of production.

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.