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:

Sensory Adaptation

The process by which sensory receptors become less responsive to constant stimuli, allowing focus on changes in the environment.

Signal Transduction

The process by which a chemical or physical signal is transmitted through a cell as a series of molecular events, leading to a cellular response.

Semicircular Canals

Three fluid-filled tubes in the inner ear that play a key role in maintaining balance and detecting head movement.

Bony Labyrinth

A complex system of channels and cavities within the temporal bone of the skull, part of the inner ear structure.