The Standard Variable Overhead Cost Rate for the Croskey Company

question 149

Multiple Choice

The standard variable overhead cost rate for the Croskey Company is $12 per unit. Budgeted fixed overhead cost is $60,000. The Croskey Company budgeted 4,000 units for the current period and actually produced 3,860 finished units. What is the production volume variance, assuming that the allocation base for fixed overhead costs is the number of units expected to be produced?

• A) $3,780 favourable
• B) $2,100 unfavourable
• C) $2,100 favourable
• D) $3,780 unfavourable

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Definitions:

Nucleus Pulposus

The inner core of the vertebral disc, composed of a jelly-like material that provides the disc with its ability to absorb shock and maintain spinal flexibility.

Spinous Process

The spinous process is a bony projection off the posterior (back) of each vertebra, which muscles and ligaments attach to.

Inferior Projection

A downward anatomical direction or extension from a main structure.

Vertebrae

are the series of small bones forming the backbone, providing support and protecting the spinal cord.