Potestio Incorporated Makes a Single Product--A Critical Part Used in Commercial

question 58

Multiple Choice

Potestio Incorporated makes a single product--a critical part used in commercial airline seats.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 total of the overhead variances is:

• A) $34,955 U
• B) $45,030 F
• C) $34,955 F
• D) $45,030 U

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Definitions:

Restrictive Indorsement

An endorsement on a negotiable instrument (like a check) that limits the way the instrument can be used or further negotiated.

Indorsement Purpose

The reason or intention behind endorsing a document, such as transferring rights or specifying conditions.

Discounts

Reductions in price given to customers, often used as a sales promotion technique.

Instrument

A written legal document that defines rights, duties, entitlements, or liabilities, such as a contract, will, promissory note, or share certificate.