The Managerial Accountant at Aquatics Pools and Spas Assess a Fixed

question 120

Multiple Choice

The managerial accountant at Aquatics Pools and Spas assess a fixed overhead budget variance of $3700 U in the month of April. The standard hours in April were 2800 hours and the standard rate was projected at $10 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 $43,700? What is the budgeted fixed overhead amount if the actual fixed overhead is $44,900?

• A)$15.61/machine hour; $41,200
• B)$14.71/machine hour; $47,400
• C)$16.04/machine hour; $48,600
• D)$11.81/machine hour; $42,100

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Definitions:

Undisclosed Limitations

Restrictions or constraints on an agreement or condition that are not made known to all parties involved.

Undisclosed Principal

A principal whose identity is unknown by a third party, and that party has no knowledge that the agent is acting for a principal at the time the agent and the third party form a contract.

Tortious Act

A wrongful act or infringement of a right leading to legal liability, not arising from a contract or statute.

Estopped

A legal principle that prevents someone from arguing something contrary to a claim previously made or accepted in court.