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Question
Rising, Inc., uses the following standard to produce a single unit of its product:
Overhead (2 hrs. @ $3/hr.) = $6
The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month show overhead costs of $150,000 based on 24,000 units of production. The overhead volume variance is:
A. $10,000 favorable
B. $12,000 favorable
C. $4,000 unfavorable
D. $16,000 unfavorable
E. $36,000 unfavorable
Answer
This answer is hidden. It contains 155 characters.
Related questions
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E. A processing further decision cannot be made from the available data.
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Q:
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Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.