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

question 147

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)$26,040 F
• B)$0
• C)$6,930 U
• D)$13,260 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 two-variance approach,what is the noncontrollable variance?

---

Definitions:

Von Restorff Effect

A psychological phenomenon where an item that stands out from a group is more likely to be remembered than other items.

Chunks

Memory strategy that involves combining individual pieces of information into larger groups, or chunks, making them easier to remember.

Short-Term Memory

The component of the memory system that holds a small amount of information in a readily accessible state for a short period of time.

Retroactive Interference

Occurs when new information hinders the ability to remember older information.