Alapai Corporation Has a Standard Cost System in Which It

question 89

Multiple Choice

Alapai Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company has provided the following data for the most recent month:
What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

• A) $3,720 Favorable
• B) $2,280 Unfavorable
• C) $1,840 Favorable
• D) $1,880 Unfavorable

Analyze the causes of material and labor variances to identify potential operational improvements.

Understand and calculate various labor variances, including direct labor rate and time variances.

Understand and calculate direct materials variances, including quantity and price variances.

Understand and calculate factory overhead variances, including controllable, volume, and fixed/variable variances.

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Definitions:

Ensure Results

Activities or measures taken to guarantee that the desired outcomes or objectives of a project or task are achieved.

Measurement

The process of determining the size, quantity, or degree of something typically using instruments or tools.

Significant Difference

A statistical measure indicating that two sets of data are reliably different from each other in a meaningful way.

Originally Planned

Referring to the initial strategy or intention that was laid out before any actions were taken.