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:

Post-Structuralism

An intellectual movement that critiques structures and frameworks, suggesting that meanings and identities are constructed and deconstructed through language and power dynamics.

Scientific Knowledge

Information and understanding about the natural world, systematically acquired through observation and experimentation within the scientific method.

Power Relations

The dynamics and structures of authority, control, and influence that exist between individuals or groups within society.

Civil Society

The realm of organized social life that is voluntary, often non-governmental, and aimed at promoting community well-being.