Patridge Company Uses a Standard Cost System in Which It

question 134

Multiple Choice

Patridge Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour-hours.The information below is taken from the company's flexible budget for manufacturing overhead: During the year,the company operated at exactly 80% of capacity,but applied manufacturing overhead to products based on the 90% level.The company's fixed overhead volume variance for the year was:

• A) $6,000 unfavourable.
• B) $6,000 favourable.
• C) $12,000 unfavourable.
• D) $12,000 favourable.

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Definitions:

Lubricating Film

A thin layer of liquid or semi-liquid substance applied to surfaces to reduce friction and wear.

Double Layer

A double layer often refers to structures composed of two levels of material, which in biological contexts, could imply the phospholipid bilayer of cell membranes or protective coatings.

Joint Surface

The part of a bone that articulates with another bone, usually covered with cartilage to enable smooth movements.

Synovial Joint

A type of joint that is surrounded by a fluid-filled capsule, allowing for smooth movement between bones.