A Manufacturing Company That Has Only One Product Has Established

question 218

Multiple Choice

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses direct labour hours (DLHs) as its measure of activity.
$\begin{array}{|l|r|}\hline \text { Standard Hours per Unit of Output } & 7.2 \mathrm{DLHs} \\\hline \text { Standard Variable Overhead Rate } & \$ 14.20 \text { per DLH } \\\hline\end{array}$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual Direct Labour Hours } & 5,100 \text { DLHs } \\\hline \text { Actual Total Variable Overhead Cost } & \$ 72,165 \\\hline \text { Actual Output } & 600 \text { units } \\\hline\end{array}$
-What was the variable overhead efficiency variance for the month?

• A) $216 unfavourable.
• B) $11,037 favourable.
• C) $11,037 unfavourable.
• D) $11,076 unfavourable.

Recognize the challenges and failure rates of new businesses.

Understand the concept and benefits of franchising.

Appreciate entrepreneurship as a vehicle for economic independence for women and minorities.

Identify the employment scope and scale of small businesses.

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Definitions:

Values

Ideas about what is right and wrong.

Emotional Life

The range of emotions an individual experiences, including how those emotions are expressed, managed, and understood within a cultural context.

Workers

Individuals engaged in physical or mental labor, either for an employer or freelancing, contributing to the production of goods or services.

Governed

The term 'governed' refers to individuals, groups, or areas that are subject to the control and administration of governing bodies or authorities.