Nitrol Corporation Manufactures Brass Vases Using a Standard Cost System

question 9

Multiple Choice

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's variable overhead rate variance for last year?

• A)$1,000 Favorable
• B)$1,060 Unfavorable
• C)$2,060 Unfavorable
• D)$9,500 Unfavorable

Identify and differentiate the properties of services and tangible products.

Grasp the importance of service quality dimensions in evaluating services.

Recognize the role of government agencies in providing services.

Understand how nonprofits use social marketing tools to achieve their objectives.

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Definitions:

Corporate Bonds

Debt securities issued by corporations to raise capital, where the issuer promises to repay the borrowings plus interest.

Callable Debenture

A type of bond that can be redeemed by the issuer before its maturity date at a predetermined price.

Puttable Mortgage Bond

A type of bond that gives the holder the option to return the bond to the issuer before its maturity date, typically in response to changes in interest rates.

Yield

The income returned on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.