Point Company Uses the Standard Costing Method

question 17

Multiple Choice

Point Company uses the standard costing method. The company's main product is a fine-quality audio speaker that normally takes 0.25 hour to produce. Normal annual capacity is 3,000 direct labor hours, and budgeted fixed overhead costs for the year were $6,750. During the year, the company produced and sold 8,000 units. Actual fixed overhead costs were $4,800. Compute the fixed overhead variance.

• A) $300 (F)
• B) $300 (U)
• C) $1,950 (U)
• D) $2,250 (U)

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Definitions:

Self-Reliant

Capable of relying on one's own powers and resources rather than those of others.

Asian Cultures

Refers to the diverse traditions, languages, and histories of countries and ethnic groups in Asia.

Person-Centred

Relates to an approach in psychology and counseling developed by Carl Rogers that emphasizes the importance of the individual's subjective experience and the need to treat each person with unconditional positive regard.

Therapeutic Approach

A systematic strategy or method used in psychotherapy or counseling to help clients understand their feelings, thoughts, and behaviors to promote healing or positive change.