The Following Information Is Available from Thinnews Co

question 37

Multiple Choice

The following information is available from Thinnews Co. ,a company that uses machine hours to apply factory overhead:
The variable factory overhead efficiency variance is:

• A)$600 unfavorable.
• B)$1,000 favorable.
• C)$1,400 unfavorable.
• D)$1,500 favorable.
• E)$2,100 favorable.

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Definitions:

Economic Values

The worth of goods or services as determined by the market or the intrinsic importance or utility they offer to individuals.

Compounded Monthly

Interest on a loan or investment calculated monthly and added to the principal sum for the calculation of subsequent interest.

Compounded Annually

Interest calculation and accumulation once per year on the principal amount of an investment or loan.

Compounded Quarterly

Interest calculated four times a year, applying on the original principal and including interest accumulated in previous periods.