(Appendix 10A) an Outdoor Barbecue Grill Manufacturer Uses a Standard

question 111

Multiple Choice

(Appendix 10A) An outdoor barbecue grill manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
The following data pertain to operations for the most recent period:

-The fixed manufacturing overhead budget variance for the period is closest to:

• A) $5,810 U
• B) $2,503 F
• C) $1,450 F
• D) $3,009 U

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Definitions:

Interest On Debt

The cost incurred by an entity for borrowing funds, which is paid as a fee over time to the lender.

Liquidity

The ease with which assets can be converted into cash, indicating the financial health and operational efficiency of a business.

Receivables Ratio

A financial metric used to assess how efficiently a company uses its assets, particularly measuring how many times a company collects its average receivables within a certain period.

Vertical Analysis

An accounting method where each entry in a financial statement is listed as a percentage of another item, facilitating ratio analysis and comparisons.