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:

Attaining A Goal

The act of achieving or reaching a desired outcome or objective.

Revenge

The act of retaliating or seeking payback for a real or perceived wrong.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience that is enjoyable or satisfying.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to fulfill their needs and desires.