To Follow Is Selected Information About the Little Dipper Company

question 161

Multiple Choice

To follow is selected information about the Little Dipper Company for the current year and prior year. What is the current year's selling and general expenses percentage (as would be found on a vertical analysis of the income statement for the current year) ?

• A)8)92%
• B)64.10%
• C)5)99%
• D)23.08%

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Definitions:

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, leading to a negative impact on financial performance.

Favorable

A term used in finance and accounting to describe results that are better than expected or budgeted.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated based on estimated overhead costs and an allocation base.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated at the start of the fiscal year based on estimated costs and activities.