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:

Strategic Goal

A long-term, broad aim that an organization seeks to achieve in order to realize its mission and vision.

Growth Targets

Specific objectives set by a business or organization aiming for a certain level of expansion or development within a given timeframe.

Incentive Pay

Financial reward given to employees beyond their regular salary, often based on performance criteria, to motivate and encourage higher productivity.

Downside Risk

The potential for loss or negative outcome in an investment or business situation.