Latimer Textiles Inc. Latimer Textiles Inc. Incurred Actual Variable Overhead Expenses of $27

question 81

Multiple Choice

Latimer Textiles Inc.
Latimer Textiles Inc. incurred actual variable overhead expenses of $27 000 in the current year for the production of 8000 units. Variable overhead was applied at a rate of $1.75 per direct labour hour and 2 direct labour hours were budgeted for each unit. The company used 17 400 direct labour hours for production.
-What was Latimer's variable overhead efficiency variance?

• A) $3450 U
• B) $3450 F
• C) $2450 U
• D) $2450 F

Understand the behavior of risk-averse individuals and their strategies to manage risk.

Analyze the effects of diversification and the pooling of risk on reducing economic uncertainty.

Evaluate the implications of changes in risk aversion on insurance markets and premiums.

Distinguish between the demanders and suppliers of insurance based on their attitudes towards risk.

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Definitions:

Cash Flow

The net amount of cash being transferred into and out of a business, critical for assessing its liquidity, operational efficiency, and financial health.

Creditors

Individuals or institutions to whom money is owed by a debtor.

Interest Expense

The price paid by an entity for the use of borrowed funds throughout a specific time frame.

Net New Equity

The amount of equity capital a company raises through the issuance of new shares minus any repurchases of existing shares.