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:

Fatty Tissue

A type of connective tissue in the body composed primarily of adipocytes, serving as energy storage, insulation, and cushioning for organs.

Electrically Charged

A condition of having an imbalance of electric charge, either positive or negative.

Resting Potential

The electrical charge across the neuronal membrane when the neuron is not actively transmitting signals.

Refractory Period

The time right after a stimulus when a nerve or muscle cannot respond to additional stimulation.