An Outdoor Barbecue Grill Manufacturer Has a Standard Costing System

question 45

Multiple Choice

An outdoor barbecue grill manufacturer has a standard costing system based on direct labour hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
$\begin{array}{|l|r|}\hline \text { Denominator Level of Activity } & 3,300 \text { DLHs } \\\hline \text { Fixed Overhead Cost } & \$ 26,895 \\\hline\end{array}$
The following data pertain to operations for the most recent period:
$\begin{array}{|l|r|}\hline \text { Actual Hours } & 3,400 \mathrm{DLHs} \\\hline \text { Standard Hours Allowed for the Actual Output } & 3,420 \mathrm{DLHs} \\\hline \text { Actual Total Fixed Overhead Cost } & \$ 28,295 \\\hline\end{array}$
-What was the fixed overhead volume variance for the period,rounded to the nearest dollar?

• A) $163 favourable.
• B) $815 favourable.
• C) $978 favourable.
• D) $993 favourable.

Analyze the strategic reasons behind the acquisition of suppliers or distributors.

Assess the potential of diverse business opportunities using the BCG Matrix.

Understand the role of integration strategies in business expansion and operational synergy.

Grasp the concept of stability strategy and its importance in maintaining current business operations.

---

Definitions:

Ozone Layer

A protective layer in Earth's stratosphere that absorbs most of the Sun's ultraviolet radiation, shielding the planet from harmful UV light.

Cyanobacteria

A phylum of bacteria that obtain their energy through photosynthesis and are noted for their role in the oxygenation of the Earth's atmosphere.

Organic Polymers

Large molecules composed of repeating carbon-based units, including proteins, nucleic acids, and many synthetic materials.

Clay

A natural, earthy material composed of fine-grained minerals, typically used in ceramics and construction.