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?

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Definitions:

PLC Chassis

The physical structure that houses a PLC's hardware components, such as the power supply, processor, and input/output modules.

I/O Modules

I/O modules are hardware components used in industrial control systems to interact with the system's inputs and outputs, facilitating data exchange between the control system and external devices.

Power Interruption

A disruption in the flow of electrical power, which can be temporary or permanent, affecting the operation of electronic devices and systems.