Sommers Fabrication Corporation Has a Standard Cost System in Which

question 24

Multiple Choice

Sommers Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.70 per MH.The company budgeted its fixed manufacturing overhead cost at $67,000 for the month.During the month,the actual total variable manufacturing overhead was $66,660 and the actual total fixed manufacturing overhead was $70,000.The actual level of activity for the period was 6,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

• A)$2,640 unfavorable
• B)$5,640 favorable
• C)$2,640 favorable
• D)$5,640 unfavorable

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Definitions:

Ethical Principle

Fundamental guidelines that influence decision-making and conduct, particularly in professional and personal contexts.

Accountability

The obligation to report, explain, or justify actions; the responsibility for one's actions and their consequences.

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Ensuring respect for an individual's self-respect, privacy, and autonomy, particularly in healthcare settings.

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