Neptune Inc The Fixed Overhead Production Volume Variance in April for Neptune

question 101

Multiple Choice

Neptune Inc. uses a standard cost system and has the following information for the most recent month, April: $\begin{array}{lr}\text { Actual direct labor hours (DLHs) worked } & 17,000 \\\text { Standard DLHs allowed for good output produced this period } & 18,000 \\\text { Actual total factory overhead costs incurred } & \$ 45,400 \\\text { Budgeted fixed factory overhead costs } & \$ 10,800 \\\text { Denominator activity level, in direct labor hours (DLHs) } & 15,000 \\\text { Total factory overhead application rate per standard DLH } & \$ 2.70\end{array}$ The fixed overhead production volume variance in April for Neptune, Inc., to the nearest whole dollar, was:

• A) $940 unfavorable.
• B) $1,040 favorable.
• C) $1,980 favorable.
• D) $2,160 favorable.
• E) $3,200 favorable.

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Definitions:

Substandard Concrete

Concrete that does not meet the required quality standards, posing risks to structural integrity and safety.

Public Sector

The segment of the economy composed of government services and enterprises, including healthcare, education, and law enforcement.

Public Property

Public property refers to assets or resources owned by the government or community as a whole, accessible and utilized by the general public.

Monetary System

A structured system for creating, managing, and distributing money in an economy.