HyTech Production Company Uses a Standard Costing System The Factory Overhead Rate Is Based on an Activity Level

question 105

Multiple Choice

HyTech Production Company uses a standard costing system.The following information pertains to the current year. $\begin{array}{lr}\text { Actual factory overhead costs }(\$ 16,500 \text { is }&\$40,125\\\text { fixed) }\\\text { Actual direct labour costs }(11,250 \text { hours }) &\$131,625\\\text { Standard direct labour for } 5,500 \text { units: }\\\text { Standard hours allowed }&11,000\text { hours } \\\text { Labour rate }&\$12.00\end{array}$
The factory overhead rate is based on an activity level of 10,000 units.Standard cost data for 5,000 units is as follows: $\begin{array}{lr}\text { Variable factory overhead } & \$ 22,500 \\\text { Fixed factory overhead } & 13,500 \\\text { Total factory overhead } & \$ 36,000 \\\end{array}$ What is the variable overhead efficiency variance for HyTech Production Company?

• A) $562.50 (U)
• B) $562.50 (F)
• C) $1,687.50 (F)
• D) $3,000.00 (U)

Perform basic arithmetic operations, including the use of the distributive property to simplify expressions.

Calculate the total amount saved over time, including simple interest calculations.

Solve problems involving exponents and powers, including their evaluation.

Understand and apply the concept of the associative property of multiplication.

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An isotope of an element that has an unstable nucleus and emits radiation during its decay to a stable form.