Framlingham Uses a Standard Costing System for Product Costing

question 25

Multiple Choice

Framlingham uses a standard costing system for product costing.The company uses direct labour hours as the cost driver to apply overhead costs.The following amounts were budgeted for the year:
The following were the actual results:
Calculate the variable overhead spending variance.

• A) $25 000 favourable
• B) $50 000 favourable
• C) $25 000 unfavourable
• D) $10 000 unfavourable

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures.

Expected Return

The anticipated return on an investment based on the probabilities of achieving certain returns, factoring in all possible outcomes.

Bankruptcy Laws

Statutes that govern the process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, represented as a percentage of the principal amount.