(Appendix 10A) Jessep Corporation Has a Standard Cost System in Which

question 39

Multiple Choice

(Appendix 10A) Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March:

-The fixed manufacturing overhead budget variance is:

• A) $1,000 U
• B) $3,000 U
• C) $2,000 U
• D) $2,000 F

---

Definitions:

Gasoline

A transparent, petroleum-derived liquid that is used primarily as a fuel in most spark-ignited internal combustion engines.

Car Wash

A facility for cleaning vehicles, typically involving an automated system with brushes and water jets or a manual cleaning by workers.

Marginal Decisions

Decisions made based on the additional benefit or cost of consuming or producing one more unit of a good or service.

Additional Costs

Are extra costs that may not have been initially accounted for or that occur beyond the expected costs of production or operations.