Baker Company Has a Standard and Flexible Budgeting System and Uses

question 4

Multiple Choice

Baker Company has a standard and flexible budgeting system and uses a two-variance analysis of factory overhead.Selected data for the June production activity follows: The production-volume variance for June is:

• A)$1,500favorable.
• B)$1,500 unfavorable.
• C)$2,000 favorable.
• D)$2,000 unfavorable.

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Definitions:

Credits

Accounting entries that increase liabilities or decrease assets, or record income in double-entry bookkeeping.

Journal Entry

A Journal Entry is a record in bookkeeping that logs the debit and credit parts of a financial transaction in accounting.

Credits

Entries that increase liabilities or equity accounts, or decrease asset or expense accounts in accounting.