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:

Methodological Approach

A specific way or strategy of conducting research or investigation in order to answer questions or solve problems, often involving specific techniques or procedures.

Evolutionary Perspective

A theoretical approach that examines how evolutionary processes, such as natural selection, shape behaviors, physical traits, and social systems.

Circular Reasoning

A logical fallacy in which the conclusion of an argument is assumed in one of the premises, offering no real evidence for the claim.

Social Psychology

The academic examination of the ways in which the real, perceived, or suggested presence of others affects individuals' mental processes, emotions, and actions.