Sheen CoManufacturers Laser Printers

question 16

Multiple Choice

Sheen Co.manufacturers laser printers.It has outlined the following overhead cost drivers:
Sheen Co.has an order for 1,000 laser printers that has the following production requirements:
Using activity-based costing,applied machine repetition overhead for the 1000 laser printer order is:

• A)$7,800.
• B)$10,000.
• C)$10,500.
• D)$150.
• E)$21,600.

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Definitions:

Direct Labor Time Variance

The difference between the actual time taken to complete a task and the standard time expected, multiplied by the labor rate.

Factory Overhead Volume Variance

The difference between the budgeted and actual volume of production, affecting the allocation of fixed manufacturing overhead costs to products.

Direct Materials Price Variance

A measure used in cost accounting that calculates the difference between the actual cost of direct materials and the standard cost expected to be incurred.

Direct Materials Quantity Variance

A measure used in cost accounting to indicate the variance between the actual quantity of materials used and the standard quantity expected to be used in production.