Judd Company Uses Standard Costs for Its Manufacturing Division At the End of the Year, Actual Data Were as Specify

question 35

Multiple Choice

Judd Company uses standard costs for its manufacturing division. Standards specify 0.2 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data: $$\begin{array} { | l | l | } \hline \text { Production volume } & 6100 \text { units } \\\hline \text { Budgeted variable overhead costs } & \$ 14,000 \\\hline \text { Budgeted direct labor hours } & 500 \text { hours } \\\hline\end{array}$$ At the end of the year, actual data were as follows:
$$\begin{array} { | l | l | } \hline \text { Production volume } & 4200 \text { units } \\\hline \text { Actual variable overhead costs } & \$ 15,100 \\\hline \text { Actual direct labor hours } & 480 \text { hours } \\\hline\end{array}$$ What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

• A) $14,000 U
• B) $15,100 F
• C) $3902 U
• D) $4878 F

Appreciate the importance of adding specific details or examples to enhance sentence or paragraph interest.

Recognize the role of revision in improving sentence length and variety.

Determine the best revision strategies for maintaining consistent tense and perspective.

Identify the elements of a strong thesis statement and its role in essays.

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, including costs related to operating the factory that are not directly tied to producing specific products.

Raw Materials

Basic materials that are used in the production process as inputs for manufacturing finished goods.

Indirect Materials

Components or supplies used in the production process that cannot be directly traced to a finished product.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, excluding direct material and direct labor costs.