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

question 203

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)$19,010 U
• B)$6,305 U
• C)$12,705 U
• D)$4,730 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 one-variance approach,what is the total variance?

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Definitions:

Adequate Records

Comprehensive and accurate documentation of financial transactions necessary for accounting and tax compliance.

Payee

In a monetary transaction, the recipient of the payment.

Maker

In a financial context, the maker is the party that creates or issues a financial instrument, such as a check or promissory note.

Cashier

An employee who handles customer transactions and the management of money in a retail environment, often responsible for processing cash, credit, and other forms of payment.