The Following Data Is Given for the Walker Company Overhead Is Applied on Standard Labor Hours

question 30

Multiple Choice

The following data is given for the Walker Company: $\begin{array}{ll}\text {1, 000 units}&\text {Budgeted prochuction}\\\text {980 units}&\text {Actual production}\\&\text {Materiale:}\\\$ 2.00 & \text { Standard price per 1b } \\12 & \text { Standard pounds per completed urit } \\11,800 & \text { Actual pounds purchased and used in production } \\\$ 23,000 & \text { Actual price paid for materials }\\&\text { Labor: }\\\$ 14 \text { per hour } & \text { Standard hourly labor rate } \\4.5 & \text { Standard hours allowed per completed unit } \\4,560 & \text { Actual labor hours worked } \\\$ 62.928 & \text { Actual total labor costs }\\&\text { Overhead: }\\\$ 27,000 & \text { Actual and budgeted fixed overhead } \\\$ 3.50 \text { per standard labor hour } & \text { Standard variable overhead rate } \\\$ 15.500 & \text { Actual variable overhead costs }\end{array}$ Overhead is applied on standard labor hours.
The factory overhead volume variance is:

• A) $65 unfavorable.
• B) $65 favorable.
• C) $540 unfavorable.
• D) $540 favorable.

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Definitions:

California

A U.S. state located on the West Coast of the country, known for its diverse geography ranging from the Pacific Coast to the Sierra Nevada mountains, as well as its significant economic, cultural, and technological contributions.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity in a group leads to an irrational or dysfunctional decision-making outcome.

Critique

A detailed analysis and assessment of something, especially a literary, philosophical, or political theory.

Subgroups

Distinctive groups within a larger group, characterized by their own specific traits or practices.