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:

Fair Value

The estimated market price of an asset or liability, based on current market conditions and arm’s length transactions, used for financial reporting purposes.

Equipment

Tangible property used in operations, such as machinery and computers.

Consolidated Balance Sheet

A financial statement showing the financial position of a parent company and its subsidiaries as if they were a single entity.

Fair Value

The gain expected to be received from an asset disposal or the amount necessary to cover a liability in a mutual transaction among market counterparts at the estimated date.