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

question 194

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)$ 750 F
• B)$ 750 U
• C)$1,000 F
• D)$1,000 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 four-variance approach,what is the volume variance?

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Definitions:

Ethical

Pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct.

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Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

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A form of social influence where an individual acts in response to a direct order from another person, usually an authority figure.