A Manufacturing Company Uses a Standard Costing System in Which

question 66

Multiple Choice

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period:
-What was the variable overhead rate variance for the period to the nearest dollar?

• A) $1,875 U
• B) $900 F
• C) $900 U
• D) $1,875 F

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Definitions:

Volatile

Describing an asset or market with frequent, significant price changes over a short period.

Kondratieff

A theory proposing that Western capitalist economies have long-term (50 to 60 years) cycles of boom and bust, named after Russian economist Nikolai Kondratiev.

Macro Economy

Refers to the study of the overall aspects and workings of an economy, including inflation, unemployment, and economic growth.

Intervals

In statistics and mathematics, a range between two numbers where data points can lie, often used in the context of confidence intervals in research.