Skillful Ltd Budgeted $900,000 for Total Overhead

question 28

Multiple Choice

Skillful Ltd budgeted $900,000 for total overhead. The standard variable overhead rate was $1 per direct labour hour, or $3 per unit, based on an anticipated activity level of 300,000 direct labour hours. During the year 110,000 units were produced. Fixed overhead costs incurred were $590,000. The variable overhead budget variance was $5,500 unfavourable, and the actual variable overhead rate was $1.10 per direct labour hour. The actual variable overhead costs incurred were:

• A) $121,000
• B) $330,000
• C) $324,500
• D) $335,500

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Definitions:

Benthic Zone

The ecological region at the lowest level of a body of water such as an ocean, lake, or stream, including the sediment surface and sub-surface layers.

Lake

Body of fresh water, often classified by nutrient status, such as oligotrophic (nutrient-poor) or eutrophic (nutrient-rich).

Stream

A small, natural body of flowing fresh water, leading from one to another or into a larger body of water.

Worldwide Distribution

The global spread or availability of a product, service, or phenomenon across the world.