The Chase Company Uses a Standard Cost System in Which

question 90

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 rate variance for maintenance cost for November was:

• A)$7,420 unfavorable
• B)$2,400 favorable
• C)$9,820 unfavorable
• D)$5,620 unfavorable

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Definitions:

Accepted Standards

Guidelines or criteria widely recognized and followed by an industry or community as a basis for quality, safety, or functionality.

Documentation

The process of creating, maintaining, and preserving records and details of various activities, transactions, or processes.

Shortness of Breath

A sensation of difficulty breathing or a feeling of not getting enough air, a symptom of various medical conditions ranging from mild to serious.

Initial Interview

The first formal conversation between a candidate and a potential employer or interviewer, focused on assessing qualifications for a position.