Megan,Incuses the Following Standard Costs Per Unit for One of Its

question 162

Multiple Choice

Megan,Inc.uses the following standard costs per unit for one of its products: Direct labor (2 hrs @ $5/hr) = $10;overhead (2 hrs @ $2.50/hr) = $5.The flexible budget for overhead is $120,000 plus $1 per direct labor hour (DLH) .Actual data for the month show total overhead costs of $225,000,total fixed overhead of $123,000,85,000 hours worked,and 40,000 units produced.The overhead production-volume variance is:

• A)$0.
• B)$3,000 unfavorable.
• C)$5,000 unfavorable.
• D)$20,000 unfavorable.
• E)None of the above.

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Definitions:

Hamburgers

A popular fast-food item typically made of ground beef, chicken, or other meats, served inside a split bun.

Government's Revenue

The total income received by the government from its various sources, including taxes, fees, fines, and other charges, used to fund public services and obligations.

Excise Tax

A type of tax charged on goods produced within the country; it is often levied on items such as alcohol, tobacco, and gasoline.

Hamburgers

A widely favored dish made up of a grilled or fried patty of minced meat, typically beef, served between slices of a bun or roll.