-Using Table 6

question 173

Multiple Choice

-Using Table 6.1, the inflation rate for 2000 would be

• A)74.0% (174.0-100).
• B)3.3% (((174.0-168.3)/168.3)*100 %).
• C)5.7% (174.0-168.3).
• D)3.1% (174-163.9)/(2*163.9)*100%).

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Definitions:

Variable Overhead Rate Variance

The difference between the expected (standard) cost of the variable overhead based on the actual production volume and the actual variable overhead incurred.

Standard Machine-Hours

A predetermined amount of time that a machine is expected to operate to meet production requirements.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including rent, utilities, and salaries for employees not directly involved in production.

Standard Hours Allowed

The time budgeted for the completion of a task or production of goods, based on efficient operations.