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:

Range

The difference between the maximum and minimum values in a data set, indicating the spread of the data.

Standard Deviation

A metric that calculates the deviation or spread of data points in a dataset from the average value.

Range

The difference between the highest and lowest values in a dataset; it measures the extent of variability within the data.

Skewed

A description of the asymmetry in the probability distribution of a real-valued random variable, where the tail of the distribution is longer on either the right (positively skewed) or the left (negatively skewed) side.