During the Period Richeleau Produced 1,000 Units of Product

question 57

Multiple Choice

During the period Richeleau produced 1,000 units of product. The flexible budget for standard costs is: Direct materials $43,000
Direct labour 67,000
Variable overhead 30,000
Fixed overhead 25,000
Variances for the period are:
Direct materials price $ 400 U
Direct materials efficiency 500 F
Direct labour price 600 F
Direct labour efficiency 200 U
Variable overhead spending 300 F
Variable overhead efficiency 100 F
Fixed overhead spending 500 F
Fixed overhead production volume 1,000 U
The budgeted fixed overhead was:

• A)$25,000
• B)$24,000
• C)$24,500
• D)$23,000

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Definitions:

Semiannual Payments

Payments made twice a year, often used in the context of bond interest payments or certain types of loans.

Compounded Semiannually

Interest calculation method where interest is added to the principal sum of a deposit or loan twice a year, resulting in interest earning interest.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, leading to an increase in the amount of interest earned in subsequent years.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.