Use the Following Information to Answer Questions

question 85

Multiple Choice

Use the following information to answer Questions
Match Point, Inc. has the following overhead standards:
Variable overhead: 4 hours at $8 per hour
Fixed overhead: 4 hours at $10 per hour
The standards were based on a planned activity of 20,000 machine hours when 5,000 units were scheduled for production. Actual data follow.
Variable overhead incurred: $167,750
Fixed overhead incurred: $210,000
Machine hours worked: 19,800
Actual units produced: 5,100

-Match Point's variable-overhead efficiency variance is:

• A) $550 favorable.
• B) $550 unfavorable.
• C) $4,800 favorable.
• D) $4,800 unfavorable.
• E) None of the answers is correct.

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Definitions:

Process Innovation

The implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment, and/or software.

Reverse Innovation

An innovation seen first, or likely to be used first, in the developing world before spreading to industrialized nations.

Outsourced

The act of hiring external organizations or individuals to perform tasks, handle operations, or provide services that are either difficult to manage or are outside of the business's core competencies.

Sustainable Business

An enterprise that operates in a way that preserves or enhances economic opportunity, environmental health, and social equity for current and future generations.