Calculate the Total Cost to Meet the Demand Using a Chase

question 41

Multiple Choice

Calculate the total cost to meet the demand using a chase production plan with overtime. Once overtime is approved the workers are on the job 12 hours each day for the full period.

• A) $72,960
• B) $73,460
• C) $73,660
• D) $76,800
• E) $77,175

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Definitions:

Variable Overhead Spending Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated to the actual production achieved.

Fixed Overhead Volume Variances

The difference between the budgeted and actual fixed overhead expenses, attributed to changes in production volume.

Standard Cost Data

Predetermined costs for materials, labor, and overhead that are used to measure and control actual production costs.

Capacity Percentage

A measure of the amount of productive capacity being used by a facility or entity, often expressed as a percentage.