Litchfield Industries Gathered the Following Information for the Month Ended

question 38

Multiple Choice

Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5000 units:
Overhead flexible budget:
Actual production was 14,000 units. Actual overhead costs were $27,000 for variable costs and $38,000 for fixed costs. Actual machine hours worked were 17,000 hours.
What is the standard variable overhead rate per machine hour?

• A)$2.16
• B)$3.30
• C)$1.39
• D)$3.00

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Definitions:

Line Extension

The development and introduction of additional items in the same product category under the existing brand name.

Increased Usage

The phenomenon where consumers use a product or service more frequently, often influenced by changes in behavior, marketing strategies, or external factors.

Co-branded Range

A product line developed by two or more brands in collaboration, leveraging the strengths and market presence of each.

Co-branding

A marketing strategy involving the collaboration between two or more brands to create a product or service that leverages the strengths and market appeal of each brand.