Beakins Corporation Produces a Single Product

question 229

Multiple Choice

Beakins Corporation produces a single product. The standard cost card for the product follows: During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The variable overhead efficiency variance for the period is:

• A)$1,200 U
• B)$1,440 U
• C)$1,200 F
• D)$1,440 F

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Definitions:

Budgets

Financial plans that outline expected revenues and expenditures for a specific period, guiding spending and investment decisions.

Bottlenecks

Restrictions in a production process that limit throughput, often leading to delays and reduced production efficiency.

Production Budget

A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.

Direct Materials Budget

A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.