(Appendix 11A)Semaan Corporation Applies Manufacturing Overhead to Products on the Basis

question 30

Multiple Choice

(Appendix 11A) Semaan Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: The company based its original budget on 2, 700 machine-hours.The company actually worked 2, 960 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3, 030 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

• A)$3, 130 Unfavorable
• B)$340 Unfavorable
• C)$340 Favorable
• D)$3, 130 Favorable

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Definitions:

Premiums

The amounts paid for insurance coverage by the insured to the insurance company.

Insurable Interest

A basic requirement for the issuance of an insurance policy, indicating that the person purchasing the policy has a stake in the safety or preservation of the insured item or person.

Equipment

Tangible assets used in the operation or activities of a business or entity, ranging from office supplies to machinery.

Arbitration Clause

A contract provision that requires parties to settle disputes through arbitration rather than litigation in courts.