Pohl Corporation Uses a Standard Cost System in Which Manufacturing

question 4

Multiple Choice

Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.For June,the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June,17,000 machine-hours were used to complete 13,000 units of product,and the following actual total overhead costs were incurred: At standard,each unit of finished product requires 1.4 hours of machine time. The variable overhead rate variance for maintenance cost for June was:

• A)$1,020 F
• B)$1,020 U
• C)$3,230 F
• D)$3,230 U

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Definitions:

Current Yield

A financial ratio that shows the annual dividend rate of a security divided by its current market price.

9% Bond

A bond that pays an annual interest rate of 9% to its holder.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used to measure the return on investment for bonds.

8 ½% Bond

A bond that pays an annual interest rate of 8.5% to its holders.