The Predetermined Overhead Rate for Zane Company Is $5 Comprised

question 175

Multiple Choice

The predetermined overhead rate for Zane Company is $5 comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours to arrive at the predetermined overhead rate of $5. Actual overhead for June was $8900 variable and $5400 fixed and 1500 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is

• A) $1800 F.
• B) $700 F.
• C) $700 U.
• D) $1800 U.

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Definitions:

Product Life Cycle

The stages a product goes through from development and introduction to the market, through growth and maturity, and eventually to decline.

Energy-Efficient

Products or systems designed to use less energy for the same or higher performance, reducing energy waste and saving costs.

iPad

A line of tablet computers designed and marketed by Apple Inc., known for its touch screen interface and wide range of applications.

Market Share

The percentage of total sales or revenue that a company or product commands in a particular market or industry.