The Following Data Have Been Provided by Liggett Corporation

question 65

Multiple Choice

The following data have been provided by Liggett Corporation:
Lubricants and supplies are both elements of variable manufacturing overhead.
-The variable overhead rate variance for lubricants is closest to:

• A) $1,120 F
• B) $5,381 F
• C) $4,261 U
• D) $5,381 U

---

Definitions:

Accrual Basis

An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash transactions occur.

Accounting

is the systematic recording, reporting, and analysis of financial transactions of a business or individual.

Dividend Income

Income received from owning shares in a company, which is often taxable at different rates than regular income.

Distribution

The action of sharing something out among a number of recipients, often used in the context of financial assets or dividends.