The Maxwell Corporation Has a Standard Costing System in Which

question 161

Multiple Choice

The Maxwell Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July: • Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
The variable overhead efficiency variance for July is:

• A)$8,040 Unfavorable
• B)$8,040 Favorable
• C)$1,200 Unfavorable
• D)$1,200 Favorable

---

Definitions:

Toy Cars

Small-scale replicas of automobiles, typically designed for play or collection.

Dinosaur Figures

Toy replicas of dinosaurs, often used for educational or recreational purposes.

Opportunity Cost

The value of the next best alternative that is foregone when making a decision or choosing one option over another.

Airplane

A powered flying vehicle with fixed wings and a weight greater than that of the air it displaces, used for transportation.