Dellarocco Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

question 164

Multiple Choice

Dellarocco Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed overhead budget variance is:

• A)$37,328 U
• B)$37,328 F
• C)$17,000 F
• D)$17,000 U

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Definitions:

Auditor Independence

A foundational principle that auditors must be unbiased and impartial with respect to the financial statements and other information they audit.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a U.S. law enacted to protect investors from fraudulent accounting activities by corporations.

Audit Client

An entity or individual who engages the services of an auditor or an audit firm to perform an audit on their financial statements.