Olivera Corporation's Performance Report for Last Month Shows That Actual

question 191

Multiple Choice

Olivera Corporation's performance report for last month shows that actual indirect materials cost, a variable cost, was $31,178 and that the spending variance for indirect materials cost was $2,261 unfavorable. During that month, the company worked 11,900 machine-hours. Budgeted activity for the month had been 12,200 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to:

• A)$2.74
• B)$2.81
• C)$2.37
• D)$2.43

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Definitions:

Denominator

The bottom part of a fraction that indicates into how many parts the whole is divided.

Synthetic Division

A simplified manual method for dividing polynomials, particularly useful for dividing by linear factors.

Division

Division is one of the four basic arithmetic operations, representing the action of dividing a number into equal parts.

Expression

An expression is a combination of symbols, numbers, and operators (such as +, -, *, /) that represents a quantity.