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

question 131

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)$23,850 U
• B)$23,850 F
• C)$14,280 F
• D)$14,280 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 three-variance approach,what is the spending variance?

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Definitions:

Global Coverage

The extent to which a service, such as telecommunications, is available worldwide or across a wide area.

GEO

Stands for Geostationary Earth Orbit, a circular orbit around Earth that matches the Earth's rotation, allowing satellites to appear stationary relative to a point on Earth.

LEO

An acronym for Low Earth Orbit, which refers to a satellite orbit less than 2,000 kilometers above the Earth's surface, commonly used for telecommunications, military reconnaissance, and scientific observation.

MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit and below geostationary orbit, typically used for satellites, including communication satellites.