Genesis Company Genesis Company Uses a Standard Cost System for Its

question 158

Multiple Choice

Genesis Company Genesis Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Genesis produced 5,000 units:
$\begin{array}{ll}\text { Standard: }\\\text { DLH per unit } & 3.00\\\text { Variable overhead per DLH } & \$ 1.80 \\\text { Fixed overhead per DLH } & \$ 3.25 \\\text { Budgeted variable overhead } & \$ 27,250\\\text { Budgeted fixed overhead } & \$ 49,500\\\\\text { Actual: }\\\text {Direct labor hours }&16,000\\\text { Variable overhead}&\$31,325\\\text { Fixed overhead}&\$49,750\\\end{array}$ Refer to Genesis Company.Using the four-variance approach,what is the variable overhead spending variance?

• A)$2,525U
• B)$4,075 F
• C)$4,075 U
• D)$4,325 U

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Definitions:

Morula Stage

An early stage in embryonic development characterized by a solid ball of cells resulting from the division of a fertilized egg.

Human Embryo

A human embryo is an early stage of human development, following fertilization and preceding the fetal stage, during which all major organs and structures begin to form.

Chorion

The outermost membrane surrounding an embryo of a reptile, bird, or mammal (in humans, it contributes to the formation of the placenta).

Extraembryonic Membrane

Membranes that are not part of the embryo but provide crucial support functions, such as nutrition and waste removal, during development in the womb.