Hugh Corporation Applies Manufacturing Overhead to Products on the Basis

question 9

Multiple Choice

Hugh Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 6,700 machine-hours.The company actually worked 6,810 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,940 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

• A)$960 favorable
• B)$370 unfavorable
• C)$960 unfavorable
• D)$370 favorable

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Definitions:

Credit Scoring

A system used by lenders to evaluate the creditworthiness of potential borrowers, resulting in a score that predicts the likelihood of repayment.

Probability of Default

The probability that a borrower will fail to fulfill their debt responsibilities.

Credit Policy

The guidelines a company follows to determine the amount and terms of credit to extend to customers.

5 C's of Credit

Refers to the five key elements a lender considers when assessing the creditworthiness of a potential borrower: character, capacity, capital, collateral, and conditions.