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

question 6

Multiple Choice

Figure 17-8
The following information was extracted from the accounting records of Noelle Company:  STANDARD COST CARD PER UNIT Direct materials: 8 pounds ×£1.20 per pound £9.60 Direct labour: 3 hours ×£20 per hour 60.00 Variable overhead: 3 hours ×£6 per hour 18.00 Fixed overhead ? Total standard cost per unit ?\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:  Units produced 10,500 Direct labour 29,000 hours costing £590,000 Overhead incurred: £182,000 Variable £430,000\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 fixed overhead spending variance would be

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Definitions:

Managerial Review Tool

A system or process used by managers to evaluate performance, set objectives, or make strategic decisions.

Customer Satisfaction

The measure of how well a company's products or services meet or exceed customer expectations.

Project Management

The utilization of techniques, abilities, expertise, and experience to meet particular project goals according to the project acceptance standards within established boundaries.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

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