Meister Electronics Corporation Has a Standard Cost System in Which

question 68

Multiple Choice

Meister Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company had budgeted its fixed manufacturing overhead cost at $68,800 for the month and its level of activity at 2,000 MHs.The actual total fixed manufacturing overhead was $73,300 for the month and the actual level of activity was 1,800 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

• A)$11,380 unfavorable
• B)$4,500 unfavorable
• C)$11,380 favorable
• D)$4,500 favorable

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Definitions:

Marketability

The ease with which an asset can be bought or sold in the market without affecting its price.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thereby having an ownership interest in the company.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes income not recognized in the profit and loss account, such as unrealized gains on securities and foreign exchange differences.