The Chase Company Uses a Standard Cost System in Which

question 63

Multiple Choice

The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. For November, the company's flexible budget for manufacturing overhead showed the following total budgeted costs at the denominator activity level of 40,000 machine-hours: During November 42,000 machine-hours were used to complete 13,200 units of product with the following actual overhead costs: The standard time allowed to complete one unit of product is 3.6 machine-hours.
-The variable overhead efficiency variance for utilities cost for November was:

• A)$2,760 favorable
• B)$3,760 unfavorable
• C)$3,760 favorable
• D)$1,000 favorable

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Definitions:

Silver Price

The market value of one ounce (or another unit) of silver, which can fluctuate based on supply and demand dynamics.

Interest Rate Swap

A financial derivative contract in which two parties exchange interest rate cash flows, typically one fixed rate and one variable rate.

Fixed Rate

A fixed rate is an interest rate on a liability, such as a loan or mortgage, that remains the same for the entire term of the loan or a set period of time, providing payment stability.

Variable Rate

An interest rate that can change over time, often based on an underlying benchmark interest rate or index that reflects the cost of borrowing in the credit markets.