A Manufacturing Company That Has Only One Product Has Established

question 93

Multiple Choice

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses direct labour hours (DLHs) as its measure of activity.
$\begin{array}{|l|r|}\hline \text { Standard Hours per Unit of Output } & 7.2 \mathrm{DLHs} \\\hline \text { Standard Variable Overhead Rate } & \$ 14.20 \text { per DLH } \\\hline\end{array}$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual Direct Labour Hours } & 5,100 \text { DLHs } \\\hline \text { Actual Total Variable Overhead Cost } & \$ 72,165 \\\hline \text { Actual Output } & 600 \text { units } \\\hline\end{array}$
-What was the variable overhead spending variance for the month?

• A) $255 favourable.
• B) $255 unfavourable.
• C) $10,821 favourable.
• D) $10,821 unfavourable.

---

Definitions:

French Revolutionary Forces

The military and paramilitary units participating in the French Revolution, instrumental in the overthrow of the monarchy and establishment of the First Republic.

Oath of the Horatii

A painting by Jacques-Louis David that depicts a scene from Roman history, emphasizing themes of duty and patriotism.

Watteau

Jean-Antoine Watteau, a French painter known for his Rococo style, depicting light-hearted leisure scenes called fêtes galantes.

Poussinistes

Followers of Nicolas Poussin (17th-century French painter) who prioritized line and drawing in art, as opposed to color and brushwork preferred by the Rubenistes.