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

question 26

Multiple Choice

Gregorich 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 fixed overhead budget variance is:

• A) $20,000 U
• B) $20,000 F
• C) $62,070 F
• D) $62,070 U

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Definitions:

Debtor

An individual or entity that owes money or other obligations to another party, known as the creditor.

Secured Party

A lender or creditor that has a legal interest in the collateral offered by the debtor to secure a loan or other obligation.

Obligation

An obligation is a legal or moral duty to do or not to do something.

Purchase-Money Security

A legal interest or lien on a piece of property which secures the repayment of the funds used to purchase the property.