A Manufacturing Company Has a Standard Costing System Based on Machine

question 187

Multiple Choice

A manufacturing company has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
$\begin{array}{|l|r|}\hline \text { Denominator Level of Activity } & 6,100 \mathrm{MHs} \\\hline \text { Overhead Costs at the Denominator Activity Level: } & \\\hline \text { Variable Overhead Cost } & \$ 35,075 \\\hline \text { Fixed Overhead Cost } & \$ 77,775 \\\hline\end{array}$
The following data pertain to operations for the most recent period:
$\begin{array}{|l|r|}\hline \text { Actual Hours } & 6,300 \mathrm{MHs} \\\hline \text { Standard Hours Allowed for the Actual Output } & 5,994 \mathrm{MHs} \\\hline \text { Actual Total Variable Overhead Cost } & \$ 36,540 \\\hline \text { Actual Total Fixed Overhead Cost } & \$ 76,875 \\\hline\end{array}$
-What was the variable overhead efficiency variance for the period,rounded to the nearest dollar?

• A) $0.
• B) $2,075 unfavourable.
• C) $2.075 favourable.
• D) $1,760 unfavourable.

Grasp the importance of creating a holding environment to facilitate adaptive work.

Acknowledge the role of both leaders and followers in solving adaptive challenges.

Realize the significance of protecting leadership voices from below.

Understand the necessity of maintaining disciplined attention to tackle adaptive challenges.

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Definitions:

Thymus Gland

A gland located in the chest that is part of the immune system, involved in the development of T lymphocytes.

Parathyroid Gland

Small glands located in the neck behind the thyroid that regulate calcium levels in the blood and bone metabolism.

Milk Production

The biological process by which mammals produce milk from mammary glands to nourish their young.

Prolactin

A hormone produced by the pituitary gland that stimulates milk production in mammals after childbirth.