Robert Inc

question 94

Multiple Choice

Robert Inc.uses the standard costing method.The company's main product is a fine-quality headphones that normally takes 0.5 hour to produce.Normal annual capacity is 5,000 direct labor hours,and budgeted fixed overhead costs for the year were $8,750.During the year,the company produced and sold 5,800 units.Actual fixed overhead costs were $6,000.
-Using the information provided for Robert Inc,compute the fixed overhead budget variance.

• A)$925 (U)
• B)$3,675 (U)
• C)$2,750 (F)
• D)$5,800 (U)

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, factoring in the time value of money.

Growth Opportunities

Potential scenarios or investments that could lead to an increase in business scale, revenue, or profits.

No-growth Value

The value of a company assuming that it will not experience any future growth in earnings or dividends.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.