The Following Data Is Given for the Bahia Company

question 158

Multiple Choice

The following data is given for the Bahia Company: Overhead is applied on standard labor hours.
The factory overhead volume variance is:

• A) $65U
• B) $65F
• C) $540U
• D) $540F

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Definitions:

Cash Equivalents

Assets readily convertible to a known cash amount within a short period, typically 90 days.

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, obtaining loans, or issuing and selling equity securities.

Interest Expense

The financial charge an organization incurs over time for borrowing funds.

Note Payable

A written promissory note wherein the borrower agrees to pay back the lender on demand or at a predetermined future date, along with interest.