The Following Standards for Variable Manufacturing Overhead Have Been Established

question 13

Multiple Choice

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
The following data pertain to operations for the last month:
What was the variable overhead efficiency variance for the month?

• A) $0.
• B) $16,817 unfavourable.
• C) $580 unfavourable.
• D) $17,397 unfavourable.

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Definitions:

Investment

The allocation of resources, usually money, in order to gain profitable returns as interest, income, or appreciation in value.

Present Value

The present worth of a future amount of money, or sequence of cash flows, taking into account a certain return rate, employed in discounting to evaluate investment prospects.

Interest Factor

A multiplier used to calculate the total interest that will accrue on an investment or loan based on the interest rate and time period.

Calculated

The result of mathematically determining a number or value through a prescribed process or formula.