The Following Data Have Been Provided by Mathews Corporation

question 87

Multiple Choice

The following data have been provided by Mathews Corporation: Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for lubricants is closest to:

• A)$1,376 F
• B)$516 U
• C)$860 F
• D)$1,376 U

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Cartel

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Marginal Cost

The increase in total cost that arises from producing an extra unit of output.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.