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

question 1

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)$13,260 U
• B)$2,640 F
• C)$6,930 U
• D)$0

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 volume variance?

Understand the budgeting process, including budget estimates, budget at completion (BAC), and estimate to complete (ETC).

Excellence in determining the role of project budgeting and estimating towards overall project success and decision-making.

Understand the concept of earned value and its role in project management.

Learn how to evaluate project financial performance using cost variance (CV) and cost performance index (CPI).

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