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:

Dormant Commerce Clause

A restriction on states’ authority that is implied in the commerce clause of the U.S. Constitution: The power given to Congress to enact legislation that affects interstate commerce in effect prohibits a state from passing legislation that improperly burdens interstate commerce.

Interstate Commerce

Interstate Commerce refers to the buying, selling, or moving of goods, services, or money across state borders, regulated by the federal government.

Gun-Free School Zone Act

Federal legislation in the United States that prohibits the unauthorized possession of firearms in designated school zones.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.