The Predetermined Overhead Rate for Zane Company Is $5 Comprised

question 175

Multiple Choice

The predetermined overhead rate for Zane Company is $5 comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours to arrive at the predetermined overhead rate of $5. Actual overhead for June was $8900 variable and $5400 fixed and 1500 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is

• A) $1800 F.
• B) $700 F.
• C) $700 U.
• D) $1800 U.

---

Definitions:

Evidence-based Science

A methodological approach that emphasizes the use of empirical evidence and research in the formation of scientific knowledge and policy-making.

Social Science Research

The systematic investigation of societal and human behavior through quantitative and qualitative methods.

Managers

Individuals in an organization responsible for planning, directing, coordinating, and overseeing the work of others to achieve the organization's goals.

Crowdsourcing

The practice of obtaining information, ideas, input, or funding from a large, typically online, group of people, rather than relying on traditional employees or suppliers.