The Dillon Corporation Makes and Sells a Single Product

question 45

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 fixed manufacturing overhead volume variance for March is:

• A)$7,750 F
• B)$7,750 U
• C)$1,550 F
• D)$3,900 U

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Definitions:

Visuals

Illustrative material that aids a prospect in increasing memory retention of a presentation.

Logical Reasoning

involves applying a structured, rational approach to understanding and evaluating arguments, situations, or problems to arrive at a conclusion.

Major Premise

A fundamental statement or proposition that forms the first basis of a logical argument or syllogism.

Minor Premise

In logic, a statement that, together with the major premise, leads to a conclusion in a syllogistic argument.