The Total Manufacturing Cost Variance Consists Of

question 145

Multiple Choice

The total manufacturing cost variance consists of:

• A) Direct materials price variance, direct labor cost variance, and fixed factory overhead volume variance
• B) Direct materials cost variance, direct labor rate variance, and factory overhead cost variance
• C) Direct materials cost variance, direct labor cost variance, variable factory overhead controllable variance
• D) Direct materials cost variance, direct labor cost variance, factory overhead cost variance

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Definitions:

Market Rate of Interest

The interest rate prevailing in the market for securities of similar risk and maturity.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover interest and principal.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.