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

question 73

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)$15,900 U
• B)$6,330 U
• C)$6,930 U
• D)$935 F

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 fixed overhead spending variance?

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Definitions:

Responsive

Being quick to react or respond appropriately to changes or requests, showing sensitivity to the needs or feelings of others.

Highly Active Fetus

A term used to describe a fetus that shows more frequent or vigorous movement in the womb than typically observed.

Low Activity Levels

Refers to a state or condition where there is a minimal amount of physical or mental exertion being exhibited.

Teratogen

Any agent or substance that can cause malformations or defects in a developing embryo or fetus when exposed during pregnancy.