The Dillon Company Makes and Sells a Single Product and Uses

question 190

Multiple Choice

The Dillon Company makes and sells a single product and uses a flexible budget for overhead to plan and control overhead costs. Overhead costs are applied on the basis of direct labour hours. The standard cost card shows that 5 direct labour hours are required per unit. The Dillon Company had the following budgeted and actual data for March:
$\begin{array} { | l | r | r | } \hline & \text { Actual } & \text { Budgeted } \\\hline \text { Units Produced } & 33,900 & 30,800 \\\hline \text { Direct Labour Hours } & 161,800 & 154,000 \\\hline \text { Variable Overhead Costs } & \$ 140,500 & \$ 123,200 \\\hline \text { Fixed Overhead Costs } & \$ 80,000 & \$ 77,000 \\\hline\end{array}$


-What was the variable overhead spending variance for March?

• A) $4,900 unfavourable.
• B) $11,060 unfavourable.
• C) $14,700 unfavourable.
• D) $17,300 unfavourable.

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Definitions:

Toggle Switch

A mechanical or electronic switch that alternates between two states or modes with each actuation.

Volume Control

The mechanism or systems used to adjust the loudness of audio output in electronic devices or instruments.

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The focus of visual attention on specific elements of the environment while ignoring others, demonstrating how cognitive processes shape perception.

Tasting

The perception of flavor from the combination of a food or substance's taste, smell, and texture on the tongue.