Caquias Corporation Makes a Product with the Following Standard Costs

question 177

Multiple Choice

Caquias Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The variable overhead rate variance for August is:

• A)$105 F
• B)$110 F
• C)$105 U
• D)$110 U

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Definitions:

Payee

The party in a financial transaction who receives the payment.

Note Receivable

A written promise that a specified amount of money, plus potentially interest, will be paid by one party to another by a specific date.

Maker

In finance, the party that creates or issues a financial instrument, such as a check.

Principal

The original sum of money borrowed in a loan, or the original amount invested, excluding any interest or dividends.