The Following Information Is Available for the Danske Company Danske Company Had Total Underapplied Overhead of $15,000

question 55

Multiple Choice

The following information is available for the Danske Company:
$\begin{array}{lrr} \text { Denominator hours for May } &15,000\\ \text {Actual hours worked during May } &14,000\\ \text {Standard hours allowed for May } &12,000\\ \text {Flexible budget fixed overhead cost } &\$45,000\\\text { Actual fixed overhead costs for May } &\$48,000\\\end{array}$


Danske Company had total underapplied overhead of $15,000. Additional information is as follows:
$\begin{array}{c}\begin{array}{lll} \text {Variable Overhead:}\\ \text {Applied based on standard direct labor hours allowed }\\\text { Budgeted based on standard direct labor hours}\\\\ \text {Fixed Overhead:}\\ \text {Applied based on standard direct labor hours allowed }\\ \text {Budgeted based on standard direct labor hours}\end{array}\begin{array}{lll}\\\$42,000\\38,000\\\\\\\$30,000\\27,000\end{array}\end{array}$




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What is the production volume variance for May?

• A) $2,000.
• B) $3,000.
• C) $6,000.
• D) $9,000.

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Definitions:

Temperate Grasslands

Ecosystems characterized by moderate temperatures and precipitation, hosting vast expanses of grasses and few trees.

Topsoil

The uppermost layer of soil that is rich in organic matter and nutrients, used extensively for cultivation and planting.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, releasing oxygen as a byproduct.

Topsoil

The uppermost layer of soil, which is rich in organic matter and nutrients, crucial for plant growth.