Newbery Corporation Manufactures One Product

question 83

Multiple Choice

Newbery Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The fixed manufacturing overhead standards for the company's only product specify 0.60 hours per unit at $9.50 per hour.The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $199,500 and budgeted activity of 21,000 hours.During the year,44,000 units were started and completed.Actual fixed overhead costs for the year were $216,200. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net) .All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

• A) ($16,700) in the FOH Budget Variance column
• B) ($16,700) in the FOH Volume Variance column
• C) $16,700 in the FOH Volume Variance column
• D) $16,700 in the FOH Budget Variance column

Understand the role of key figures and innovations in the development of various industries.

Recognize the regional economic disparities and their historical causes and implications.

Understand the principles and methods of asset depreciation, including different methods of calculating depreciation.

Identify the costs that are included in the purchase of land, buildings, and equipment.

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Definitions:

Preferences

Individual choices or inclinations regarding various options, based on personal likes, dislikes, values, or interests.

Programmed Decision-Making

A method of decision-making using established procedures or rules for routine or repetitive problems requiring predictable solutions.

Alternative Solutions

Different methods or approaches to solving a problem or addressing a situation, offering multiple options for consideration.

Ethical Implications

Ethical implications refer to the moral consequences or considerations of actions, decisions, or policies, focusing on what is right, wrong, or in the best interest of society and individuals.