The Management of Alpha Lawnmowers Has Calculated the Following Variances

question 193

Multiple Choice

The management of Alpha Lawnmowers has calculated the following variances:

What is the total variable overhead variance of the company?

• A)$4,500 F
• B)$12,500 F
• C)$8,500 F
• D)$4,000 F

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, including the balance sheet, income statement, and cash flow statement.

Accruals

Accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Unrecorded Expense

A cost or liability that has been incurred but not yet documented or included in the financial records or statements of a company.

Unrecorded Revenue

Earnings from completed transactions or delivered goods/services that have not yet been documented in the financial accounts.