The Following Information Is Available from Thinnews Co

question 126

Multiple Choice

The following information is available from Thinnews Co. ,a company that uses machine hours to apply factory overhead:
Under a two-variance breakdown (decomposition) of the total factory overhead variance,the factory overhead efficiency variance is:

• A)$0.
• B)$400 favorable.
• C)$600 unfavorable.
• D)$1,400 favorable.
• E)$1,400 unfavorable.

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Definitions:

Credit

An accounting entry that increases the balance of liabilities and equity accounts, or decreases the balance of an asset or expense account.

Stockholders' Equity

The equity held by stockholders in a corporation, determined by subtracting total liabilities from total assets.

Dividends Account

An account used in accounting to track distributions of earnings paid to shareholders.

Salary Expense Account

An account recording the total amount paid to employees for services rendered during a specific period, before any deductions.