Aase Corporation Has a Standard Cost System in Which It

question 69

Multiple Choice

Aase Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company has provided the following data for the most recent month:
What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

• A) $2,040 favorable
• B) $600 unfavorable
• C) $2,640 favorable
• D) $600 favorable

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Definitions:

Mandible

The lower jawbone, significant in the skeletal structure of the face, involved in chewing and forming the lower part of the skull.

Fractured

The condition of having a broken bone or a crack in a bone.

Rib

One of the long curved bones forming the rib cage, which protects the thoracic cavity and its organs.

Neck

Slightly constricted part of a tooth, between the crown and the root.