Regent,Inc

question 183

Multiple Choice

Regent,Inc.uses the following standard to produce a single unit of its product: overhead $6 (2 hrs.@ $3/hr.) .The flexible budget for overhead is $100,000 plus $1 per direct labor hour.Actual data for the month show overhead costs of $150,000,and 24,000 units produced.The overhead volume variance is:

• A)$10,000 favorable.
• B)$12,000 favorable.
• C)$4,000 unfavorable.
• D)$16,000 unfavorable.
• E)$36,000 unfavorable.

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Definitions:

Financial Institution

An establishment that conducts financial transactions such as investments, loans, and deposits.

Household Debt/income Ratio

A measure comparing the debt level of a household to its income, indicating financial health and borrowing capacity.

Interest Payments

The regular required payments made by a borrower to a lender for the use of borrowed money, usually a portion of the loan amount.

Interest-only Loans

Loans for which the borrower pays only the interest on the principal balance, with the principal amount remaining unchanged over a set term.