Atkinson Landscaping
Atkinson Landscaping Applies Variable Overhead Based on Direct

question 78

Multiple Choice

Atkinson Landscaping
Atkinson Landscaping applies variable overhead based on direct labour hours. At the beginning of the current year, Atkinson had estimated the following:
$\begin{array}{lr}\text { Estimated variable overhead } & \$ 56000 \\\text { Estimated units of production } & 10000 \text { units } \\\text { Standard direct labour hours per unit } & 2.5 \text { hours }\end{array}$
During the year, 11 000 units were produced using a total of 27 200 direct labour hours and actual overhead costs were $60 000.
-Atkinson's variable overhead spending variance for the year was:

• A) $ 672 F
• B) $ 928 F
• C) $4000 U
• D) $ 145 U

---

Definitions:

Toxemia

A medical condition in pregnant women characterized by high blood pressure, swelling, and protein in the urine, also known as pre-eclampsia.

Thalidomide

A drug originally marketed in the 1950s as a sedative, but later found to cause birth defects when taken by pregnant women, leading to strict controls on its use.

Kaposi's Sarcoma

A type of cancer that forms in the lining of blood and lymph vessels, often associated with weakened immune systems, like in AIDS.

Malaria

A life-threatening disease transmitted to humans through the bite of infected Anopheles mosquitoes, caused by Plasmodium parasites.