The Standard Variable Overhead Cost Rate for the Croskey Company

question 117

Multiple Choice

The standard variable overhead cost rate for the Croskey Company is $12 per unit.Budgeted fixed overhead cost is $60,000.The Croskey Company budgeted 4,000 units for the current period and actually produced 3,860 finished units.What is the production volume variance?
Assume the allocation base for fixed overhead costs is the number of units expected to be produced.

• A)$3,780 favourable
• B)$2,100 unfavourable
• C)$2,100 favourable
• D)$3,780 unfavourable

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Definitions:

Balance Sheet

A financial statement that shows a company's financial position, detailing assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial report that summarizes the revenues, expenses, and profits/losses incurred during a specific period of time.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Auditor

A professional who examines and verifies a company's financial statements and records to ensure accuracy and compliance with regulatory standards.