The Following Data Apply to Walker Corporation for the Year

question 54

Multiple Choice

The following data apply to Walker Corporation for the year 20X4.

-For Product Y, the usage variance was

• A) $3,300 unfavourable.
• B) $3,300 favourable.
• C) $2,400 unfavourable.
• D) $2,400 favourable.

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Definitions:

Cost Object

Any item for which costs are separately measured and assigned, including products, services, projects, or departments.

Product Costs

The total costs involved in manufacturing a product, which include direct materials, direct labor, and manufacturing overhead.

Expensed

A term referring to costs that are immediately charged against revenues as an expense, rather than being capitalized.

Indirect Cost

Expenses not directly tied to the production of goods or services, such as utilities or rent.