Use the Table for the Question(s)below

question 89

Multiple Choice

Use the table for the question(s) below.
The quarterly working capital levels for Hasbeen Toys are presented in the following table (in $ millions) :

-The permanent working capital needs for Hasbeen Toys is closest to:

• A)$1,100 million
• B)$2,435 million
• C)$1,275 million
• D)$770 million
• E)$640 million

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Definitions:

Variable Overhead Spending Variance

The difference between the actual variable overheads incurred and the expected variable overheads based on the standard cost for the actual production level.

Standard Variable Overhead Rate

The estimated cost per unit of the variable overheads that are expected to be incurred in the production process.

Actual Total Variable Overhead Cost

The real expense incurred for variable overheads, which fluctuates with changes in production volume.

Direct Labour Efficiency Variance

The difference between the standard labor hours for actual production and the actual labor hours worked, indicating labor efficiency.