Gina Production Company Uses a Standard Costing System

question 130

Multiple Choice

Gina Production Company uses a standard costing system. The following information pertains to 2011. The factory overhead rate is based on an activity level of 10,000 hours. Standard cost data for 5,000 units is as follows:
What is the variable overhead efficiency variance for Gina Production Company?

• A) $562.50 F
• B) $3,000.00 U
• C) $562.50 U
• D) $1,687.50 F

Analyze how adjustments on the end-of-period spreadsheet impact financial statements.

Differentiate between adjusting entries, closing entries, and journal entries.

Calculate net income or net loss based on the information provided on the end-of-period spreadsheet.

Understand how the accounting cycle progresses from journal entries to financial statements.

---

Definitions:

Low Intelligence

A below-average cognitive ability characterized by difficulties in learning and adapting to everyday demands.

Hallucinogenic Drug

A hallucinogenic drug is a substance that alters perception, thought, and mood, leading to experiences that differ significantly from those of ordinary consciousness, often involving visual or auditory hallucinations.

Phencyclidine (PCP)

Phencyclidine, commonly known as PCP, is a dissociative drug that induces hallucinations, altered perceptions of reality, and, at high doses, can lead to symptoms resembling schizophrenia.

MDMA (Ecstasy)

A psychoactive drug primarily known for its use in recreational settings to enhance sensations and energy.