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

question 114

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 variable factory overhead efficiency variance is:

• A)$0.
• B)$3,000 unfavorable.
• C)$5,000 unfavorable.
• D)$17,000 unfavorable.
• E)$25,000 unfavorable.

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Definitions:

Domestic Goods

Are products and services that are produced within a country's borders, as opposed to imported goods from other countries.

Federal Revenues

The income received by the federal government from taxes, fees, and other sources used to fund government operations and programs.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Import Quota

A government-imposed limit on the quantity or monetary value of a certain good that can be imported into the country.