Burkett Company Uses a Standard Cost System

question 86

Multiple Choice

Burkett Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: Standard direct labour hours 9,000
Actual direct labour hours 10,000
Fixed overhead $190,000
Variable overhead $185,000
The variable overhead efficiency variance was:

• A)$10,000 F
• B)$50,000 U
• C)$35,000 U
• D)$15,000 U

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Definitions:

Washington Consensus

represents a set of neoliberal economic policies that emphasize fiscal discipline, deregulation, trade liberalization, and privatization.

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade, protect domestic industries, or generate revenue.

Privatization

The process of transferring ownership or operation of a business, enterprise, agency, or public service from the public sector (government) to private individuals or organizations.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, resulting in the interconnectedness of global economies, cultures, and populations.