The Maxwell Corporation Has a Standard Costing System in Which

question 161

Multiple Choice

The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July: • Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
The variable overhead efficiency variance for July is:

• A)$8,040 Unfavorable
• B)$8,040 Favorable
• C)$1,200 Unfavorable
• D)$1,200 Favorable

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Definitions:

Patent

A legal right granted to an inventor or assignee to exclusively make, use, or sell an invention for a certain number of years.

Fixed Cost

Expenses that do not change in total despite fluctuations in the volume of goods or services produced or sold.

Patent

A legal document granted by the government, giving an inventor exclusive rights to make, use, and sell an invention for a certain number of years.

Demand Function

A mathematical function that describes the quantity of a good that consumers are willing and able to purchase at various prices.