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

question 176

Multiple Choice

Pearce Company
Pearce Company uses a standard cost system for its production process.Pearce Company applies overhead based on direct labor hours.The following information is available for July:

• A)$ 7,950 U
• B)$ 25 F
• C)$ 7,975 U
• D)$10,590 U

Standard:
DLH per unit	2.20
Variable overhead per DLH	$2.50
Fixed overhead per DLH
Budgeted variable overhead	$3.00
(based on 11,990 DLHs)

Actual:
Units produced	4,400
Direct labor hours	8,800
Variable overhead	$29,950
Fixed overhead	$42,300

Refer to Pearce Company Using the four-variance approach,what is the variable overhead spending variance?

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Definitions:

First Six Months

This term often refers to the initial period of a new venture, job, or plan, which is critical for setting foundations and early successes.

Development Purpose

Refers to the reason or objective behind initiating development projects, usually aimed at improvement or innovation in a specific area.

Performance Objectives

Specific, measurable targets or goals that individuals or organizations aim to achieve within a certain timeframe to assess performance efficiency and effectiveness.

Performance Appraisal

The systematic evaluation of an employee’s job performance, strengths, and areas for development, usually conducted through observation and comparison against established criteria.