Hien, Inc Uses Machine-Hours as the Base to Apply Its Manufacturing

question 53

Multiple Choice

Hien, Inc. uses machine-hours as the base to apply its manufacturing overhead. The following information relates to variable manufacturing overhead standards at Hien: Standard rate per machine-hour: $50
Total standard machine-hours allowed for units produced during September: 4,000
Hien's variable overhead rate variance for September was $800 favorable. Its variable overhead efficiency variance was $3,600 unfavorable. How many machine-hours did Hien actually use during September?

• A)3,928
• B)3,944
• C)4,056
• D)4,072

Understand the effect of an additional unit’s score on the overall average in a dataset.

Calculate profit or loss in a competitive market based on production costs and market price.

Analyze the relations between marginal cost, average variable cost, and average total cost to make production decisions.

Precisely interpret tables and figures to identify cost components and their implications for business decisions.

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Definitions:

Upstream Intra-entity Gross Profits

Upstream intra-entity gross profits are profits derived from transactions between a parent company and its subsidiary, where the subsidiary sells goods or services to the parent, requiring careful account adjustments when preparing consolidated financial statements.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable directly or indirectly to the parent company.

Excess Amortization Expense

Excess Amortization Expense occurs when the amount of amortization expenses exceeding what is considered normal or necessary for an accounting period, often due to aggressive depreciation of assets.

Father-Son-Grandson Configuration

A hierarchical arrangement often used in genealogy, databases, or organizational structures to represent relationships.