The Dillon Company Makes and Sells a Single Product and Uses

question 183

Multiple Choice

The Dillon Company makes and sells a single product and uses a flexible budget for overhead to plan and control overhead costs. Overhead costs are applied on the basis of direct labour hours. The standard cost card shows that 5 direct labour hours are required per unit. The Dillon Company had the following budgeted and actual data for March:
$\begin{array} { | l | r | r | } \hline & \text { Actual } & \text { Budgeted } \\\hline \text { Units Produced } & 33,900 & 30,800 \\\hline \text { Direct Labour Hours } & 161,800 & 154,000 \\\hline \text { Variable Overhead Costs } & \$ 140,500 & \$ 123,200 \\\hline \text { Fixed Overhead Costs } & \$ 80,000 & \$ 77,000 \\\hline\end{array}$


-What was the variable overhead efficiency variance for March?

• A) $6,160 favourable.
• B) $6,160 unfavourable.
• C) $6,240 favourable.
• D) $6,240 unfavourable.

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Definitions:

Plasma Membranes

The semi-permeable membrane enclosing the cytoplasm of a cell, controlling the movement of substances in and out of the cell.

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins among others.

Thermoacidophiles

Microorganisms that thrive in extremely hot and acidic environments, often found in geothermal areas.

Halophiles

Microorganisms that thrive in environments with high salt concentrations, often found in places like salt lakes or the Dead Sea.