The Following Data Have Been Provided by Moretta Corporation,a Company

question 59

Multiple Choice

The following data have been provided by Moretta Corporation,a company that produces forklift trucks:
Supplies cost is an element of variable manufacturing overhead.The variable overhead efficiency variance for supplies cost is:

• A) $135 U
• B) $135 F
• C) $966 U
• D) $966 F

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Definitions:

AC

Short for Air Conditioning, a system for controlling the humidity, ventilation, and temperature in a building or vehicle.

Price Effect

The impact on consumer behavior and purchase decisions resulting from a change in the price of a good or service.

Quantity Effect

The variation in overall income derived from altering the amount of a product sold, while keeping its price stable.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.