Everett, Inc

question 99

Multiple Choice

Everett, Inc. budgeted $1,488,000 for total overhead. The standard variable overhead rate was $2 per direct labour hour, or $6 per unit, based on an anticipated activity level of 600,000 direct labour hours. During the year 220,000 units were produced. Fixed overhead costs incurred were $300,000. The variable overhead budget variance was $19,800 unfavourable, and the actual variable overhead rate was $2.10 per direct labour hour.
The variable overhead efficiency variance was:

• A) $76,000 U
• B) $63,800 U
• C) $46,200 F
• D) $44,000 F

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Definitions:

Morphogenesis

The biological process that causes an organism to develop its shape and structure.

System-enhancing Behaviors

Refers to actions taken by individuals or groups that improve or optimize the functionality and effectiveness of a system.

Cathexis

A psychoanalytic term that describes the process of investing mental or emotional energy in a person, object, or idea.

Adjudication

A formal process in which an authoritative figure or body makes a judgement or decision regarding a dispute, often in a legal context.