Colina Production Company Uses a Standard Costing System

question 118

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 variable overhead efficiency variance for Colina Production Company?

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

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Definitions:

Moral Responsibility

The obligation to act righteously and to acknowledge the impact of one's actions on others and the ethical standards of society.

Social Bonding

The process of developing attachments and connections between individuals, which can foster a sense of belonging and mutual support within groups or communities.

Peer Evaluations

Assessments made by individuals of the same status, such as coworkers or classmates, regarding each other's performance, skills, or behaviors.

Self-esteem

An individual's overall subjective emotional evaluation of their own worth.