Pardoe Inc

question 210

Multiple Choice

Pardoe Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: During March, the following activity was recorded by the company: • The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for March is:

• A)$1,050 F
• B)$1,050 U
• C)$250 F
• D)$250 U

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Definitions:

Clustered Column PivotChart

A type of chart in Excel that represents data with vertical columns grouped by categories, typically used to compare values across different categories.

Calculated Field

A formula field in databases or spreadsheets that performs a calculation using other fields' values.

Sales Increase

A rise in the number of products or services sold, typically indicating a positive performance for a business.

PivotTable Subtotals

A feature in PivotTables that automatically calculates and displays a subtotal for each unique value or data group, enhancing data analysis.