Mendel Company Makes the Following Journal Entry

question 141

Multiple Choice

Mendel Company makes the following journal entry:
Variable Manufacturing Overhead Allocated229,000
Variable Manufacturing Overhead Efficiency Variance7,000
Variable Manufacturing Overhead Control179,000
Variable Manufacturing Overhead Spending Variance57,000
Which of the following statements is true of the given journal entry?

• A) A variable manufacturing overhead cost of $179,000 is written-off.
• B) An unfavorable spending variance of $57,000 is recorded.
• C) A favorable efficiency variance of $7,000 is recorded.
• D) A favorable flexible-budget variance of $50,000 is recorded.

Discuss the societal and economic impacts of income and wealth inequality.

Evaluate the arguments for and against greater income equality and the effects on incentives and utility.

Understand the rate of poverty in the United States and how it has changed over time.

Recognize the goals and conflicts in economic policymaking related to income distribution and output growth.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for allocating labor costs to products.

Activity-Based Costing

A method in cost accounting that assigns costs to products and services based on the activities involved in their production or delivery.

Activity Rates

Rates used in activity-based costing to assign overhead costs to products or services, based on the activities that drive those costs.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate cost information.