Mason Ltd Uses a Standard Costing System

question 46

Multiple Choice

Mason Ltd uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: The variable overhead spending variance is

• A) $930 Favorable
• B) $2,070 Unfavorable
• C) $33,000 Unfavorable
• D) $33,000 Unfavorable.

Describe the steps in the accounting cycle.

Calculate and interpret the current ratio.

Understand the classification and matching of terms with their definitions.

Explain the necessity of closing books at the end of an accounting period.