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

question 223

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)$2,525 U
• B)$2,775 U
• C)$4,375 U
• D)$4,375 F

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 three-variance approach,what is the spending variance?

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Definitions:

Market Research

The process of gathering, analyzing, and interpreting information about a market, including potential customers and competitors.

SWOT Analysis

A strategic planning tool that evaluates Strengths, Weaknesses, Opportunities, and Threats of a business or project.

Competitive Analysis

The systematic evaluation of the strengths and weaknesses of current and potential competitors.

Technological Environment

Refers to the set of technological conditions and developments that affect the operation and performance of businesses.