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

question 8

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)$ 250 U
• B)$ 250 F
• C)$1,800 U
• D)$1,800 F

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 four-variance approach,what is the variable overhead efficiency variance?

---

Definitions:

I/Os

I/Os, or Inputs/Outputs, are points of interaction for a computer or control system where data is received and sent, respectively.

Input Module

A component of a larger system (e.g., a PLC) designed to read and interpret incoming signals from various input devices.

Programming Device

A hardware tool used to input or modify instructions and data in a programmable electronic system.