A Manufacturing Company Has a Standard Costing System Based on Direct

question 4

Multiple Choice

A manufacturing company has a standard costing system based on direct labour-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: $\begin{array}{lrr} \text { Denominator level of activity } &3,700&\text { DLHs }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &£ 28,490\\ \text { Fixed owerhead cost } &£ 47,545\\ \text { The following data pertain to operations for the most recent period:} &\\ \text { Actual hours } &3,900&\text { DLHs }\\ \text { Standard hours 3,900allowed for the actual output } &3,850&\text { DLHs }\\ \text { Actual total variable overhead cost } &£ 29,445\\ \text {Actual total fixed overhead cost } &£47,995 \\\end{array}$


-What was the variable overhead efficiency variance for the period to the nearest pound

• A)£578 U
• B)£385 U
• C)£378 U
• D)£955 U

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Definitions:

Need for Affiliation

A psychological and social phenomenon where individuals seek emotional support, validation, or companionship from others; often seen as a fundamental human motive.

Employees

Individuals who are hired by someone for wages or salary, often to perform specific duties within an organization.

Workplace Conflicts

Disagreements or disputes between employees or between employees and management, which can arise from differences in personality, values, or interests.

Affiliation-oriented

A focus or emphasis on building relationships and forming connections with others.