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

question 193

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)$ 275 U
• B)$ 1,000 U
• C)$ 4,325 U
• D)$ 5,325 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 one-variance approach,what is the total overhead variance?

---

Definitions:

Trophoblast

The outer cell layer of a late blastocyst, which in placental mammals gives rise to the chorion and to the fetal contribution to the placenta.

Blastocyst

An early stage of mammalian embryonic development, characterized by a sphere of cells surrounding a fluid-filled cavity and an inner cell mass that will develop into the fetus.

Limb Buds

The early developmental structures in vertebrate embryos which will develop into the limbs (arms and legs).

Muscles Differentiate

The process by which muscle cells undergo specialization, acquiring characteristics specific to muscle tissue types such as skeletal, cardiac, or smooth muscle.