Dance Company Has a Standard Variable Overhead Rate of $4

question 47

Multiple Choice

Dance Company has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units. Actual results for the year follow: Actual units produced: 42,000
Actual machine hours worked: 120,000
Actual variable overhead incurred: $520,000
Dance's variable-overhead efficiency variance is:

• A)$9,200 favourable.
• B)$20,000 favourable.
• C)$20,000 unfavourable.
• D)$27,000 favourable.
• E)$27,000 unfavourable.

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Definitions:

Generative

Describes something capable of producing or creating, often used in linguistics to refer to the innate capacity of humans to generate a limitless number of sentences from a finite set of rules.

Symbolic

Pertaining to symbols or symbolism, where objects, figures, or colors are used to represent abstract ideas or concepts.

Practical

Practical relates to actual experience or practice rather than theory or pure ideas, often implying a hands-on or applied approach.

Semantics

The study of meaning in language, including the analysis of words, phrases, signs, and symbols and their shift in meaning.