The Standard Costs and Actual Costs for Direct Materials, Direct

question 155

Multiple Choice

The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: $\begin{array}{lrr} \text { Standard Costs } &\\ \text {2,500 kilograms@\$8 } & \text {Direct material}\\ \text { 7,500 hours @\$12 } & \text { Direct labor}\\\\ \text { Actual Costs } &\\ \text { 2,600 kilograms@\$8.75 } & \text {Direct material }\\ \text { 7,400 hours @ \( \$ 11.40 \) } & \text {Direct labor}\\\\ \text { Factory overhead (100\% capacity } &\\ \text { \( 10,000 \mathrm{hrs}) : \) } &\\\end{array}$
Variable cost @ $2 per hour
Total variable cost, $18,000
Fixed cost @ $0.80 per hour
Total fixed cost, $8,000
The amount of the fixed factory overhead volume variance is:

• A) $2,000 favorable.
• B) $2,500 favorable.
• C) $2,500 unfavorable.
• D) $2,000 unfavorable.

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Definitions:

Temperature

The average kinetic energy of particles within a substance, which shows the temperature level, defining its heat or coldness.

Mass Spectroscopy

An analytical technique that measures the mass-to-charge ratio of ions to identify and quantify molecules in a sample.

Magnetic Field

A vector field that describes the magnetic influence on moving electric charges, electric currents, and magnetic materials.

Gaseous Ion

An ion existing in a gaseous phase, typically produced under high energy conditions or ionization processes.