Bowering Corporation Has Provided the Following Information

question 287

Multiple Choice

Bowering Corporation has provided the following information:

-For financial reporting purposes,the total amount of product costs incurred to make 9,000 units is closest to:

• A) $81,000
• B) $188,550
• C) $107,550
• D) $197,550

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on a standard rate.

Variable Manufacturing Overhead

Costs that vary with the level of production output, such as utilities or raw materials.

Direct Labor-hours

The total time workers spend working directly on manufacturing goods, often used as a basis for allocating manufacturing overhead.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead based on the actual production level.