The Managerial Accountant at Aquatics Pools and Spas Assess a Fixed

question 93

Multiple Choice

The managerial accountant at Aquatics Pools and Spas assess a fixed overhead budget variance of $3,400 U in the month of April.The standard hours in April were 2,900 hours and the standard rate was projected at $13 per machine-hour.There were unforeseen complications that involved raw materials and the standard rate projected per machine hour-was inaccurate.What was the standard rate per-machine hour if the standard fixed overhead cost of production is $41,100? What is the budgeted fixed overhead amount if the actual fixed overhead is $43,100?

• A)$14.17 /machine hour;$39,700
• B)$13.86 /machine hour;$44,500
• C)$14.15 /machine hour;$46,500
• D)$12.15 /machine hour;$40,200

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Definitions:

Time Loss

The amount of productive time lost due to various reasons, such as equipment breakdowns, illnesses, or inefficiencies.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with prices determined in free markets.

Self-Interest

An individual's actions and decisions are motivated by their own personal gain or interest, often considered as the driving force behind economic activity.