Question

4. Which of the following variances explain the amount of overapplied or underapplied manufacturing overhead a firm had at the end of the year? a. The direct materials variances and the direct labor variances. b. The variable manufacturing overhead variances. c. The fixed manufacturing overhead variances. d. Both the variable and fixed manufacturing overhead variances.

5. When faced with a special order request, a firm should consider whether accepting the order will: affect current sales. require additional materials not used by the firm in making products. required additional equipment not currently used by the firm in making products. all of the above.

Answer 1

Answer

4) the answer for the 4 th qstn is b that isthe variable manufacturing overhead variances

manufacturing overhead account has at the year end werr over absorbed or underabsorbed.

5)all of the above were correct.

When accepting a special order request a firm has to consider all the above factors such as the current sales,require additional materials not yet used by the firm in making the products, required additional equipment not currently usrd by the firm. All has to be considered before taking the decision of whether to accept or not.