Rich Company, Which Uses a Standard Cost System, Budgeted $800,000

question 7

Multiple Choice

Rich Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated. Other data for the period were:
Actual units produced: 10,600
Actual machine hours worked: 51,800
Actual variable overhead incurred: $475,000
Actual fixed overhead incurred: $790,100
Standard variable overhead rate per machine hour: $8.50
Standard production time per unit: 5 hours
Rich's variable-overhead efficiency variance is:

• A) $10,200U.
• B) $10,200F.
• C) $15,300U.
• D) $15,300F.
• E) None of the other answers are correct.

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Definitions:

Patient Records

Documentation containing detailed information about a patient's medical history, treatments received, diagnostic tests, and other relevant health information.

EHR's Coding Software

Software tools used within Electronic Health Records systems to assign standardized codes to diagnoses and treatments for billing and analysis.

Diagnosis Code

A standardized value used to classify a diagnosis for purposes such as billing and health records, often based on systems like ICD-10.

Produce a Flag

The action or process of creating or manufacturing a flag.