The Upton Company Employs a Standard Costing System in Which

question 99

Multiple Choice

The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
$\begin{array} { | l | r | } \hline \text { Variable manufacturing overhead cost incurred } & \$ 48,700 \\\hline \text { Total variable overhead variance } & \$ 300 \text { favourable } \\\hline \text { Standard hours allowed for actual production } & 7,000 \\\hline \text { Actual direct labour hours worked } & 6,840 \\\hline\end{array}$

-What was the variable overhead spending variance?

• A) $740 favourable.
• B) $740 unfavourable.
• C) $820 favourable.
• D) $820 unfavourable.

Analyze the effects of taxes on monopoly pricing and production decisions.

Determine the optimal level of production to maximize profit or meet certain economic criteria.

Apply knowledge of marginal costs and fixed costs to make production and pricing decisions.

Recognize the impact of price elasticity of demand on profit-maximizing output levels.

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Definitions:

Ingratiation

A psychological strategy used by an individual to make others like them by flattering or praising them, often to gain personal advantage.

Self-promotion

Strategies employed by individuals to present themselves in a favorable light to others, often to achieve social or professional advancement.

Intimidation

The act of making others feel frightened or overawed, especially to influence their behavior or decisions.

Self-defeating Trade-offs

Choices or decisions that may seem beneficial in the short term but ultimately undermine one's own goals or well-being.