Commodore Company Commodore Company Uses a Standard Cost System for Its Production

question 193

Multiple Choice

Commodore Company
Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours.The following information is available for September when Commodore produced 5,000 units:

• A)$ 275 U
• B)$ 1,000 U
• C)$ 4,325 U
• D)$ 5,325 U

Standard:
DLH per unit	3.00
Variable overhead per DLH	$1.80
Fixed overhead per DLH	$3.25
Budgeted variable overhead	$27,250
Budgeted fixed overhead	$49,500

Actual:
Direct labor hours	16,000
Variable overhead	$31,325
Fixed overhead	$49,750

Refer to Commodore Company.Using the one-variance approach,what is the total overhead variance?

---

Definitions:

Business Ownership

The legal possession and control over a business entity, often accompanied by responsibilities like decision-making and financial risk.

Work Ethic

A set of values based on the principles of discipline, hard work, and responsibility in a professional context.

Professional Identity

An individual's self-concept based on attributes, beliefs, values, motives, and experiences as a member of a profession.

Moral Obligation

A duty or commitment to act in a way that is considered morally correct by societal standards.