(Appendix 11A)The Dillon Corporation Makes and Sells a Single Product

question 95

Multiple Choice

(Appendix 11A) The Dillon Corporation makes and sells a single product.Overhead costs are applied on the basis of standard direct labor-hours.The standard cost card shows that 5 direct labor-hours are required per unit.The Dillon Corporation had the following budgeted and actual data for March: The fixed manufacturing overhead budget variance for March is:

• A)$900 F
• B)$3, 900 F
• C)$3, 000 U
• D)$7, 750 F

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reflected as an expense in the income statement.

Notes Payable

A liability account listing amounts owed by a company from formal written promises to pay a certain amount in the future.

Prepaid Expense

Prepaid Expense represents payments for goods or services that will be received in the future, recorded as assets until they are consumed or used.

Adjusting Entries

Inserts into financial logs at the conclusion of an accounting interval to dispense incomes and expenditures to their respective periods.