Gina Production Company Uses a Standard Costing System

question 117

Multiple Choice

Gina Production Company uses a standard costing system. The following information pertains to 2011. The factory overhead rate is based on an activity level of 10,000 hours. Standard cost data for 5,000 units is as follows:
What is the variable overhead efficiency variance for Gina Production Company?

• A) $562.50 F
• B) $3,000.00 U
• C) $562.50 U
• D) $1,687.50 F

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Definitions:

Metabolism

The overall chemical functioning of the body, including all body processes that build small molecules into large ones (anabolism) and break down large molecules into small ones (catabolism).

Soluble Fiber

A type of fiber that dissolves in water, forming a gel-like substance that can help lower blood cholesterol and glucose levels.

Cholesterol Levels

Measures of the total amount of cholesterol in the blood, including both high-density lipoprotein (HDL) and low-density lipoprotein (LDL) cholesterol.

Saturated Fats

Fats containing a high proportion of fatty acid molecules without double bonds, considered less healthy in diets.