(Appendix 11A)Cuda Manufacturing Corporation Uses a Standard Cost System with Machine-Hours

question 65

Multiple Choice

(Appendix 11A) Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs) as the activity base for overhead.The following information relates to Cuda's operations last year: What was Cuda's variable overhead rate variance?

• A)$6, 000 Unfavorable
• B)$15, 000 Favorable
• C)$20, 000 Unfavorable
• D)$21, 000 Favorable

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Definitions:

Cash Disbursement

The process of paying out money from a fund or account, usually for expenses or investments.