Jaune Company Uses a Standard Cost System in Which It

question 10

Multiple Choice

Jaune Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) . The following data pertain to last month's operations: The fixed manufacturing overhead budget variance is:

• A)$500 U
• B)$500 F
• C)$2,200 U
• D)$1,700 U

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Definitions:

U.S. Dollar

The official currency of the United States, widely used as a standard of exchange in international transactions.

Imports

Goods and services purchased from other countries, bringing them into the domestic market for consumption or input into further production.

Exports

Goods or services sold by one country to other countries on the international market.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.