Gina Production Company Uses a Standard Costing System

question 131

Multiple Choice

Gina Production Company uses a standard costing system. The following information pertains to 2011: The 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 fixed overhead volume variance for Gina Production Company?

• A) $1,350 F
• B) $3,600 F
• C) $4,125 U
• D) $1,350 U

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Definitions:

Pleistocene

The geological epoch from about 2.6 million to 11,700 years ago, characterized by the last ice ages and the emergence of Homo sapiens.

Carboniferous

A geologic period and system that spans 60 million years from the end of the Devonian Period 358.9 million years ago, to the beginning of the Permian Period.

Ordovician

A geologic period and system of the Paleozoic Era, occurring around 485 to 444 million years ago, noted for its high levels of marine biodiversity.

Pleistocene

An epoch of the geological time scale, lasting from about 2.6 million to 11,700 years ago, marked by repeated glacial cycles.