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:

Instinctual Behavior

Behaviors that are innate and driven by genetic coding, often performed in response to certain stimuli without prior learning.

Negative Reinforcement

A process in behavior modification where the removal of an unfavorable outcome or stimulus strengthens a behavior, encouraging its repetition.

Instinctive Drift

The phenomenon where an animal's learned behavior reverts to its innate behaviors, overriding conditioned responses.

Behavior Modification

A psychological treatment method that alters undesirable behaviors through rewards, punishments, or other strategies.