Donnegan Manufacturing Company employs a standard cost system. A planned volume variance in the first quarter of 2008, which is expected to be absorbed by the end of the fiscal year, ordinarily should
A. Be deferred at the end of the first quarter, regardless of whether it is favorable or unfavorable.
B. Never be deferred beyond the quarter in which it occurs.
C. Be deferred at the end of the first quarter if it is favorable; unfavorable variances are to be recognized in the period incurred.
D. Be deferred at the end of the first quarter if it is unfavorable; favorable variances are to be recognized in the period incurred.
Ans: A. Be deferred at the end of the first quarter, regardless of whether it is favorable or unfavorable.
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Oslund Company manufactures only one product and uses a standard cost system. During the past month, the following variances were observed:
Direct labor rate variance$31,000favorableDirect labor efficiency variance 46,000unfavorableVariable overhead efficiency variance 28,000unfavorableStandard direct labor hours (DLH) per unit of output 5 Oslund applies variable overhead using a standard rate of $20 per standard DLH allowed. During the month, Oslund used 20% more DLHs than the total standard hours allowed for the units manufactured.What were the total standard DLHs (to the nearest whole number) for the units manufactured by Oslund Company during the past month?
According to Backer, Spielvogel & Bates Worldwide's Target Scan, Adapters are older people who maintain their values while keeping open minds when faced with change
Indicate whether the statement is true or false