A Manufacturing Company That Has Only One Product Has Established

question 189

Multiple Choice

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses machine hours as its measure of activity.
$\begin{array}{|l|r|}\hline \text { Standard Hours per Unit of Output } & 8.1 \text { machine hours } \\\hline \text { Standard Variable Overhead Rate } & \$ 14.30 \text { per machine hour } \\\hline\end{array}$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual Hours } & 1,700 \text { machine hours } \\\hline \text { Actual Total Variable Overhead Cost } & \$ 24,905 \\\hline \text { Actual Output } & 200 \text { units } \\\hline\end{array}$
-What was the variable overhead efficiency variance for the month?

• A) $567 favourable.
• B) $1,144 unfavourable.
• C) $1,172 favourable.
• D) $1,172 unfavourable.

---

Definitions:

Ectoderm

The embryonic external layer of cells or tissue that forms early on and develops into the skin and nervous system.

Mesoderm

The middle layer of an embryo in early development, between the endoderm and ectoderm, which gives rise to muscles, bones, and blood tissues.

Germ Layer

Each of the three layers of cells (ectoderm, mesoderm, and endoderm) that form during embryogenesis, which give rise to all tissues and organs of an organism.

Radial Cleavage

A type of embryonic development in which the cells divide parallel or perpendicular to the polar axis, resulting in a radially symmetrical embryo.