Adams Couses the Following Standard to Produce a Single Unit of of Its

question 53

Multiple Choice

Adams Co.uses the following standard to produce a single unit of its product:
Variable overhead (2 hrs.@ $3/hr.) = $ 6
Actual data for the month show variable overhead costs of $150,000 based on 24,000 units of production.The total variable overhead variance is:

• A) $6,000F
• B) $6,000U
• C) $78,000U
• D) $78,000F
• E) $0

---

Definitions:

Product Style

The specific design, aesthetics, and features that distinguish a product from its competitors, influencing consumer preference and demand.

Competitive Price-Taker

A market participant that accepts the prevailing market price because the firm has no influence over market conditions.

Homogeneous Product

A product that is considered the same across different producers with no differentiation in the eyes of the consumer.

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.