Luka Company Uses the Following Overhead Standard Costs for a Single

question 22

Multiple Choice

Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $14.00 per hour. Actual data for the month showed overhead costs of $174,000 for 2000 units produced. What is the difference between actual overhead costs and standard overhead costs allocated to products?

• A)$146,000 favorable
• B)$146,000 unfavorable
• C)$36,000 favorable
• D)$36,000 unfavorable

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Definitions:

Tech-Savvy Audiences

Groups of people who are highly knowledgeable about and comfortable using advanced technology and digital platforms.

Flowchart

A diagrammatic representation used to illustrate a sequence of actions or steps in a complex system or process.

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Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.