The Richie Company Uses a Standard Costing System in Which

question 20

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 variable overhead rate variance is:

• A)$4,275 favorable
• B)$4,275 unfavorable
• C)$1,050 unfavorable
• D)$1,050 favorable

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Definitions:

Neural Plate

A key embryonic structure that develops into the nervous system, including the brain and spinal cord.

Extraembryonic Membrane

Membranes formed outside the embryo that play essential roles in its development, including the amnion, yolk sac, allantois, and chorion.

Developing Digestive Tract

The Developing Digestive Tract refers to the formation and maturation of the gastrointestinal system in embryos and fetuses, crucial for nutrient absorption and waste elimination post-birth.

Extraembryonic Membrane

Membranes outside the embryo, such as the amnion, chorion, yolk sac, and allantois, that provide protection and nourishment in vertebrate embryos.