Rumington Popcorn Uses a Standard Cost System and Applies Overhead

question 85

Multiple Choice

Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis.The company estimated that 30,000 units would be produced in 2017 and uses this quantity to establish its standard overhead cost per unit.The cost formula for overhead costs used to develop the standard overhead cost per unit was:
Overhead = $120,000 + $6 per unit
During the year, actual overhead cost was $340,000.Actual units produced were 32,000.How much is the controllable overhead variance for 2017?

• A)$20,000 favorable
• B)$20,000 unfavorable
• C)$28,000 favorable
• D)$28,000 unfavorable

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Definitions:

Salinity

The concentration of salt in water, often measured in parts per thousand.

Surface Area

The total area that the surface of an object occupies, influencing various physical and chemical properties like absorption and evaporation rates.

Birth Rates

The number of live births per thousand of the population in a given year.

Wasting

Rapid loss of body weight and muscle mass, often due to disease, malnutrition, or extreme physical stress.