The Upton Company Employs a Standard Costing System in Which

question 67

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 is the standard variable overhead rate per direct labour hour?

• A) $6.91.
• B) $6.95.
• C) $7.00.
• D) $7.12.

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Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs.

Polypeptide Chains

Sequences of amino acids linked by peptide bonds, forming part of or the whole protein molecule.

Quaternary

A level of protein structure where multiple polypeptide chains, referred to as subunits, come together to form a functional protein complex.

Acidic Group

A functional group within a molecule that commonly donates protons (H+) and displays acidic properties, often containing oxygen and hydrogen.