Crawford Company’s Standard Fixed Overhead Cost Is $6 Per Direct

question 72

Multiple Choice

Crawford Company’s standard fixed overhead cost is $6 per direct labour hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labour hour per unit. During 2006, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labour.
-Refer to the figure.What is the variable overhead efficiency variance for Griffen?

• A)$2,000 (U)
• B)$4,000 (U)
• C)$8,000 (U)
• D)$20,000 (U)

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Definitions:

Emergency

A situation that poses an immediate risk to health, life, property, or environment, requiring urgent intervention to prevent a worsening of the situation.

Peripheral Nervous

refers to the part of the nervous system that lies outside the central nervous system, comprising nerves and ganglia, responsible for relaying information to and from the body and brain.

Endocrine

Relates to the system of glands that release hormones directly into the bloodstream to regulate various bodily functions, including growth, metabolism, and mood.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column.