Colina Production Company Uses a Standard Costing System The Factory Overhead Rate Is Based on an Activity Level

question 107

Multiple Choice

Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products. $\begin{array} { l } \text { Actual production}&5,500 units\\ \text {Actual factory overhead costs \( (\$ 16,500 \) is fixed) }&\$ 40,125 \\ \text {Actual direct labor costs ( 11,250 hours) }&\$ 131,625\\ \text {Standard direct labor for 5,500 units: }&\\ \text { Standard hours allowed}&11,000 hours\\ \text {Labor rate }&\$ 12.00\\\end{array}$


The factory overhead rate is based on an activity level of 10,000 direct labor hours.
Standard cost data for 5,000 units is as follows:

$\begin{array} { l } \text { Variable factory overhead}&\$22,500\\ \text {Fixed factory overhead }&13,500\\ \text {Total factory overhead }&\$36,000\\\end{array}$
What is the variable overhead efficiency variance for Colina Production Company?

• A)$562.50 (F)
• B)$3,000.00 (U)
• C)$1,687.50 (F)
• D)$562.50 (U)

Grasp the development and significance of the Oedipus and Electra complexes in psychoanalytic theory.

Recognize various defense mechanisms and their implications in human behavior.

Understand the stages of coping mechanisms and their evolution over a person's lifetime.

Learn about the psychoanalytic perspective on literature and its symbolic representation of psychological concepts.

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Definitions:

Pulse Pressure

The difference between the systolic and diastolic blood pressure readings, reflecting the force that the heart generates each time it contracts.

Respiratory Rate

The number of breaths a person takes per minute, an important vital sign indicating respiratory functioning.

Vital Sign Measurements

Clinical assessments of basic body functions, typically including temperature, heart rate, breathing rate, and blood pressure.

Mean Arterial Pressure (MAP)

The average pressure in a patient's arteries during one cardiac cycle, crucial for ensuring adequate blood flow to the organs.