Luka Company Uses the Following Overhead Standard Costs for a Single

question 118

Multiple Choice

Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $13.50 per hour.Actual data for the month showed overhead costs of $132,000 for 1,800 units produced.What is the difference between actual overhead costs and standard overhead costs allocated to products?

• A)$107,700 favorable
• B)$107,700 unfavorable
• C)$50,250 favorable
• D)$50,250 unfavorable

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Definitions:

Biome

A large ecological community with distinct climate, plants, and animals adapted to its conditions, classified by predominant vegetation and characterized by adaptations of organisms to that particular environment.

Principal Factors

The main or most important elements or components that contribute to a specific process or outcome.

Tropical Rain Forests

Diverse and dense forests located in the tropics, characterized by high rainfall and biodiversity.

Productive Biome

An ecosystem with a high rate of plant productivity, supporting a vast array of animal life due to the abundance of food sources.