Bartoletti Fabrication Corporation Has a Standard Cost System in Which

question 125

Multiple Choice

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.60 per MH.The company had budgeted its fixed manufacturing overhead cost at $65,000 for the month.During the month,the actual total variable manufacturing overhead was $22,080 and the actual total fixed manufacturing overhead was $63,000.The actual level of activity for the period was 4,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

• A) $1,080 Unfavorable
• B) $1,080 Favorable
• C) $920 Unfavorable
• D) $920 Favorable

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Definitions:

Basic Conditions

Environments or solutions characterized by a pH greater than 7, often used in chemical reactions to promote specific outcomes.

Condensation Polymer

A type of polymer formed by the reaction of monomer molecules, where each reaction results in the elimination of a small molecule, such as water.

Dacron

A registered trademark for a polyester fiber that is durable, resistant to stretching and shrinking, and used in textiles.

Addition Polymer

A polymer formed by the sequential addition of monomer molecules with unsaturated bonds, without the loss of any molecule or atom.