Genesis Company Genesis Company Uses a Standard Cost System for Its

question 161

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 efficiency variance?

• A)$ 250 U
• B)$ 250 F
• C)$1,800 U
• D)$1,800 F

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Definitions:

Terminal Liver Cancer

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Atheist

An individual who does not believe in the existence of any deities or gods.

Agnostic

A person who believes that the existence or nonexistence of a deity or deities cannot be known with certainty.

Terminal Disease

A disease that is incurable and irreversible, leading to death within a short period of time despite treatment.