Strait Corporation Uses the Following Standard Costs for a Single

question 75

Multiple Choice

Strait Corporation uses the following standard costs for a single unit of product:
Actual data for the month showed variable overhead costs of $524,000 for 20,000 units produced. What is the difference between actual variable overhead costs and standard variable overhead costs allocated to products?

• A) $38,000 favourable
• B) $38,000 unfavourable
• C) $36,000 favourable
• D) $36,000 unfavourable

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Definitions:

Global Pricing

The strategy of setting prices for products or services on a global scale, taking into account various international market factors.

Pricing Products Globally

Setting prices for products on an international scale, considering factors like costs, market conditions, and currency fluctuations.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses have been deducted.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.