A Manufacturing Company That Has Only One Product Has Established

question 75

Multiple Choice

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on machine-hours. The following data pertain to operations for the last month:
-What is the variable overhead efficiency variance for the month?

• A)$7,105 U
• B)$6,989 F
• C)$6,989 U
• D)$1,104 U

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Definitions:

Remeasurement Gains And Losses

Gains or losses that result from the process of converting the financial statements of a foreign operation into the presentation currency or functional currency.

Unrealized Gains

Gains on investments that have increased in value but have not yet been sold and thus not turned into cash.

Statement

A general term for any kind of financial report or declaration made by a company or an individual.

Public Sector Accounting Board

A body responsible for setting accounting standards for governmental and other public sector entities.