Jessep Corporation Has a Standard Cost System in Which Manufacturing

question 95

Multiple Choice

Jessep Corporation has a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labour hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March:
$\begin{array} { | l | r | } \hline \text { Denominator Hours } & 15,000 \text { hours } \\\hline \text { Actual Hours Worked } & 14,000 \text { hours } \\\hline \text { Standard Hours Allowed for the Output } & 12,000 \text { hours } \\\hline \text { Flexible Budget Fixed Overhead Cost } & \$ 45,000 \\\hline \text { Actual Fixed Overhead Costs } & \$ 48,00 \\\hline\end{array}$


-What was the fixed overhead volume variance?

• A) $3,000 favourable.
• B) $3,000 unfavourable.
• C) $9,000 unfavourable.
• D) $6,000 unfavourable.

Understand the concept of flotation costs and how they impact financial decisions.

Comprehend the definitions and differences between pure play and subjective approaches to calculating the Weighted Average Cost of Capital (WACC).

Learn the definition and calculation method for the Weighted Average Cost of Capital (WACC).

Understand the assumptions behind using market values in WACC computation, and the rationale for these assumptions.

---

Definitions:

Primary

This term describes a functional group or atom connected directly to one other carbon atom, typical in the classification of alcohols and amines.

Secondary

In chemistry, indicates molecules or functional groups that are attached to a secondary carbon atom, which itself is connected to two other carbon atoms.

Tertiary

Referring to an organic molecule or an ion that has a carbon atom connected to three other carbon atoms.

IUPAC Name

Naming chemicals systematically in alignment with the regulations provided by the International Union of Pure and Applied Chemistry.