Everett Ltd Budgeted $1,488,000 for Total Overhead

question 33

Multiple Choice

Everett Ltd budgeted $1,488,000 for total overhead. The standard variable overhead rate was $2 per direct labor hour, or $6 per unit, based on an anticipated activity level of 600,000 direct labor hours. During the year 220,000 units were produced. Fixed overhead costs incurred were $300,000. The variable overhead budget variance was $19,800 unfavorable, and the actual variable overhead rate was $2.10 per direct labor hour. The standard fixed overhead rate per direct labor hour was

• A) $0.48
• B) $0.90
• C) $0.50
• D) $0.96

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Definitions:

Stratosphere

The stratosphere is a layer of the Earth's atmosphere located above the troposphere, characterized by a slight temperature increase with altitude and the presence of the ozone layer.

Ozone

A molecule composed of three oxygen atoms, found in the Earth's stratosphere, where it plays a critical role in protecting living organisms from ultraviolet radiation.

Lichen

A symbiotic organism composed of a fungus and a photosynthetic partner, typically an alga or cyanobacterium, found on rocks, trees, and soil.

Mutualistic Relationship

A type of symbiotic relationship where both organisms involved benefit from their interaction.