Hoovern Company Provided the Following Data for May What Is the Cost of Goods Sold?
A) $75,000
B)

question 146

Multiple Choice

Hoovern Company provided the following data for May: $$\begin{array} { l l } \text { Direct materials } & \$ 60,000 \\\text { Direct labour } & \$ 30,000 \\\text { Overhead } & \$ 80,000 \\\text { Beginning finished goods } & \$ 15,000 \\\text { Ending finished goods } & \$ 34,000 \\\text { Production in units } & 10,000\end{array}$$ What is the cost of goods sold?

• A) $75,000
• B) $151,000
• C) $165,000
• D) $184,000

---

Definitions:

Standard Variable Overhead Rate

The predetermined rate at which variable overhead costs are expected to occur relative to a specific activity or cost driver.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Variable Overhead Efficiency Variance

Variable overhead efficiency variance is the difference between the actual and budgeted variable overhead cost based on the efficient utilization of resources.

Direct Labor-hours

The amount of labor hours that can be directly attributed to the production process, serving as a basis for allocating manufacturing overhead costs in some costing systems.