A Manufacturing Company Uses a Standard Costing System in Which

question 44

Multiple Choice

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The variable overhead efficiency variance for the period is closest to:

• A)$300 F
• B)$1,465 U
• C)$1,760 U
• D)$1,775 U

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Definitions:

Chart of Accounts

An organized list of all accounts in a business entity's financial records, each account accompanied by a reference number.

Account Numbers

Unique identifiers assigned to individual accounts within a company's accounting system, facilitating organization and tracking of financial transactions.

Ledger

A book or other collection of financial accounts of a particular type, often the final record where data from journals is compiled.

Journal

A book or electronic record where all financial transactions of a business are initially recorded, often before posting to ledgers.