Point Company Uses the Standard Costing Method

question 9

Multiple Choice

Point Company uses the standard costing method. The company's main product is a fine-quality audio speaker that normally takes 0.25 hour to produce. Normal annual capacity is 3,000 direct labor hours, and budgeted fixed overhead costs for the year were $6,750. During the year, the company produced and sold 8,000 units. Actual fixed overhead costs were $4,800. Compute the fixed overhead volume variance.

• A) $300 (F)
• B) $300 (U)
• C) $1,950 (U)
• D) $2,250 (U)

---

Definitions:

Middle Adult Age

Refers to the period in human life typically between the ages of 40 and 65, where individuals experience various physiological and psychological changes.

Human Immune System

The body's defense network consisting of a complex of cells, tissues, and organs that work together to protect the body against infection and disease.

Fluid Intelligence

The ability to reason and think flexibly, solve novel problems, and process new information, typically contrasting with accumulated knowledge and experiences.

Estrogen Deficiency

A state in which there is a lower than normal level of estrogen, a key hormone in female development and reproductive health.