The Dillon Company Makes and Sells a Single Product and Uses

question 183

Multiple Choice

The Dillon Company makes and sells a single product and uses a flexible budget for overhead to plan and control overhead costs. Overhead costs are applied on the basis of direct labour hours. The standard cost card shows that 5 direct labour hours are required per unit. The Dillon Company had the following budgeted and actual data for March:
$\begin{array} { | l | r | r | } \hline & \text { Actual } & \text { Budgeted } \\\hline \text { Units Produced } & 33,900 & 30,800 \\\hline \text { Direct Labour Hours } & 161,800 & 154,000 \\\hline \text { Variable Overhead Costs } & \$ 140,500 & \$ 123,200 \\\hline \text { Fixed Overhead Costs } & \$ 80,000 & \$ 77,000 \\\hline\end{array}$


-What was the variable overhead efficiency variance for March?

• A) $6,160 favourable.
• B) $6,160 unfavourable.
• C) $6,240 favourable.
• D) $6,240 unfavourable.

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Definitions:

Autism

A neurodevelopmental disorder characterized by difficulties in social interaction, verbal and non-verbal communication, and repetitive behaviors or interests.

Echolalia

The repetition of phrases or sounds someone else has made, often observed in individuals with certain developmental disorders, such as autism.

Repetitious Verbal Mimicking

The act of consistently imitating speech sounds or words, often seen in developmental or neurocognitive disorders.

Autism Spectrum Disorder

A developmental disorder characterized by difficulties in social interaction and communication, along with restricted or repetitive patterns of thought and behavior.