A Company Received a Bank Statement Showing a Balance of $78,000.Reconciling

question 126

Multiple Choice

A company received a bank statement showing a balance of $78,000.Reconciling items included outstanding checks of $2,400 and a deposit in transit of $9,400.What is the company's adjusted bank balance?

• A)$66,200
• B)$71,000
• C)$85,000
• D)$68,600

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Definitions:

Direct Labor Rate Variance

A measure of the difference between the actual cost of direct labor and the expected (or standard) cost.

Standard Rate

A predetermined cost or charge that applies to a particular activity, operation, or product within a business environment.

Fixed Factory Overhead Volume Variance

A measure used in cost accounting to determine the difference between the budgeted and actual volume of production, affecting fixed overhead costs.

Standard Costs

Standard costs are the predetermined costs associated with manufacturing a product or delivering a service, used as benchmarks to measure performance.