At Cady Corporation, Maintenance Is a Variable Overhead Cost That

question 165

Multiple Choice

At Cady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for June showed that actual maintenance costs totaled $9,600 and that the associated rate variance was $400 unfavorable. If 8,000 machine-hours were actually worked during June, the standard maintenance cost per machine-hour was:

• A)$1.30 per MH
• B)$1.25 per MH
• C)$1.20 per MH
• D)$1.15 per MH

---

Definitions:

Manufacturing Companies

Businesses involved in the production of goods using labor, machinery, and raw materials.

Services Sector

A segment of the economy composed of businesses and individuals that provide intangible goods or services to consumers, such as healthcare, education, finance, and hospitality.

Enterprise Resource Planning (ERP)

An integrated management of main business processes, often in real time and mediated by software and technology, aimed at improving efficiency and data accuracy.

Global Database

A comprehensive collection of data or information accessible from multiple countries, often used for research, analysis, or business intelligence.