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)

---

Definitions:

Researchers

Individuals engaged in systematic investigation to establish facts or principles or to collect information on a subject.

Research Subjects

Individuals or groups who participate in scientific or academic studies, contributing data through their actions, responses, or biological samples.

Objectivity

Refers to the practice of being unbiased and neutral, basing conclusions solely on facts and evidence without allowing personal feelings, opinions, or prejudices to influence them.

Exploratory Research

An attempt to describe, understand, and develop theory about a social phenomenon in the absence of much previous research on the subject.