Colina Production Company Uses a Standard Costing System

question 48

Multiple Choice

Colina Production Company uses a standard costing system. The following information pertains to 2014. Direct labor hours is the driver used to assign overhead costs to products. The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:
What is the fixed overhead volume variance for Colina Production Company?

• A) $3,600 (
• B) $1,350 (
• C) $4,125 (
• D) $1,350 (

Recognize the relationship between market equilibrium, surplus, and shortage.

Distinguish between movements along and shifts of the supply and demand curves.

Understand how market mechanisms naturally move towards equilibrium.

Appreciate the distinction between supply (demand) and quantity supplied (demanded).

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Definitions:

Macroenvironment

The broader, external forces that affect the operations and performance of businesses and markets, including economic, political, and social factors.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group, influencing behaviors and perceptions.

Company Capabilities

The skills, resources, and strengths that allow a business to execute strategies and achieve its objectives effectively.

Country Culture

Entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences, and subtler aspects, which are trickier to identify.