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)

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Definitions:

Conversational Modes

Various styles or manners of conducting a conversation, influenced by context, culture, and the relationship between participants.

Compositional Mode

The manner or style in which a piece of writing or music is created, reflecting the structure and elements used.

Digital Media

Electronic media that work on digital codes, including internet, websites, social media, and other digital platforms to create, view, modify, and distribute content.

Nuances

Subtle differences or distinctions in expression, meaning, or response that are often critical to understanding complex issues.