Figure 17-8
the Following Information Was Extracted from the Accounting

question 17

Multiple Choice

Figure 17-8
The following information was extracted from the accounting records of Noelle Company: $\begin{array}{c}\text { STANDARD COST CARD}\\\text { PER UNIT}\\\begin{array}{llc}\text { Direct materials: } & 8 \text { pounds } \times £ 1.20 \text { per pound } & £ 9.60 \\\text { Direct labour: } & 3 \text { hours } \times £ 20 \text { per hour } & 60.00 \\\text { Variable overhead: } & 3 \text { hours } \times £ 6 \text { per hour } & 18.00 \\\text { Fixed overhead } & & ?& \\\text { Total standard cost per unit } & &? \end{array}\end{array}$ Budgeted fixed overhead for the period is £420,000, and the budgeted fixed overhead rate is based on an expected capacity of 30,000 direct labour hours.
The following information is available regarding the company's operations for the period: $\begin{array}{ll}\text { Units produced } & 10,500 \\\text { Direct labour } & 29,000 \text { hours costing } £ 590,000 \\& \\\text { Overhead incurred: } & £ 182,000 \\\text { Variable } & £ 430,000\end{array}$
-Refer to Figure 17-8. Noelle's variable overhead efficiency variance would be

• A)£7,000 favourable.
• B)£8,000 unfavourable.
• C)£15,000 favourable.
• D)£23,000 unfavourable.

---

Definitions:

Market Segments

Division of a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.

Older Adults

Individuals who are in the later stages of their life, often considered to be 65 years of age or older.

B₂B Market

Refers to the exchange of goods, services, or information between businesses, rather than between businesses and consumers.

Segmentation

The process of dividing a broad consumer or business market into sub-groups based on shared characteristics.