Trumbauer Incorporated Makes a Single Product--An Electrical Motor Used in Many

question 56

Multiple Choice

Trumbauer Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
The fixed overhead volume variance is:

• A) $18,482 U
• B) $18,482 F
• C) $31,482 U
• D) $31,482 F

---

Definitions:

Bank Discount Rate

The interest rate at which a country's central bank lends money to domestic banks, often used as a benchmark for other interest rates.

Proceeds of the Note

The total amount of money received from issuing a note payable, including the principal and any interest.

Accrued Interest

The interest that has accumulated on a loan or bond but has not yet been paid.

Interest Income

Revenue received from investments in financial instruments like bonds, savings accounts, and loans, where the investor receives payment for lending money.