Dire Corporation Uses the Following Standard Costs for a Single

question 221

Multiple Choice

Dire Corporation uses the following standard costs for a single unit of product:

Actual data for the month showed overhead costs of $425,000 for 22,500 units produced.What is the difference between actual overhead costs and standard overhead costs allocated to products?

• A)$329,375 favorable
• B)$329,375 unfavorable
• C)$53,125 favorable
• D)$53,125 unfavorable

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Definitions:

Pull Processes

Manufacturing or production processes initiated by actual customer demand rather than forecasting, aiming to reduce inventory and increase efficiency.

Speculative Processes

Refers to procedures or methods based on conjecture rather than knowledge, often used in finance or trading to make decisions based on potential future events.

Reactive Processes

Processes that are initiated in response to specific situations or changes, rather than being pre-planned or proactive.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent, involved in producing and delivering a product or service from suppliers to the end consumer.