The Dillon Corporation Makes and Sells a Single Product

question 4

Multiple Choice

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The variable overhead rate variance for March is:

• A)$4,900 U
• B)$11,060 U
• C)$14,700 U
• D)$17,300 U

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Definitions:

Addictive Substance

A chemical or compound that causes a compulsive, and often harmful, need for repeated consumption.

Opiates

A group of drugs derived from opium used for their analgesic, sedative, and euphoric effects; includes both natural and synthetic compounds.

Type I Alcoholism

A subtype of alcoholism characterized by early onset, often with a genetic component, and is associated with rapid progression of dependence.

Type II Alcoholism

A category of alcoholism characterized by early onset, genetic predisposition, and a tendency towards impulsive behavior, often leading to severe dependency.