The Richie Company Uses a Standard Costing System in Which

question 66

Multiple Choice

The Richie Company uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. Data for the month of October include the following:

• Variable manufacturing overhead cost incurred: $42,750
• Total variable manufacturing overhead variance: $5,430 favorable
• Standard machine setups allowed for actual production: 2,920 setups
• Actual machine setups incurred: 2,850 setups
-The standard variable overhead rate per machine setup is:

• A)$16.91
• B)$12.78
• C)$15.00
• D)$16.50

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Definitions:

Cross-examination

The questioning of a witness by the opposing side in a trial, following the initial examination (direct examination) by the side that called the witness.

Witness's Credibility

Refers to the believability of a witness based on their honesty, reliability, and consistency in testimony.

Appellate Court

A higher court that reviews the decisions of lower courts to ensure that the law was applied correctly and justice was served.

Lower Court

A court of law that has limited jurisdiction or authority and is below a higher court in the judicial hierarchy.